Formerly professional efficiency experts, today's cost reduction specialists often work on a contingency basis, delivering results or there is no cost to the client.

In today’s complex business world, cost reduction specialists help their clients reduce costs and protect hard-earned profits. It's an extremely valuable service, as the extent of waste today in business cannot be overstated.

Just consider this industry data provided by Lauren & Associates, a specialist in the cost reduction management industry.:

• Up to 25% of hospital profits will be spent on excessive supplier charges

• Nearly 90% of commercial leases include overcharges and hidden charges by their landlords

• Approximately 80% of business firms pay more than they should for basic utility services

• Nearly 9 out of 10 telecommunications audits result in lower rates and/or reduced costs

• Millions of dollars are misspent every year in Yellow Page ads

Cost Efficiencies

Most businesses accept the reduction of everyday business costs as a constant battle. The cost of rent, salaries and office equipment may occupy the mind of every manager and financial officer. But the amount paid for energy, healthcare and telecommunications often go unquestioned.

The reason? Most companies simply don’t have the skills, resources or knowledge and, above all, the time to undertake an in-depth audit to diagnose and correct the organizational ills that affect cost efficiency and profitability.

No-fee Audits

That’s where a cost reduction specialist can help. These professional efficiency experts generally start with a comprehensive audit – often at no cost to the client – that searches for effective methods of reducing costs without adversely impacting the quality of a company’s service or operation.

Following a confidential and thorough review of closed business records, these experts will identify operating inefficiencies, overpayments and billing errors.

They look for duplicate payments, payments to wrong vendors, discounts not taken, freight charge errors, pricing errors, and many other common and uncommon sources for cost reduction.

From there, they will recommend and execute a savings strategy for the client. These specialists can potentially help a business eliminate waste and save thousands of dollars every year, with a minimum investment of time.

Cost Reduction Service Cost

How much does this service cost? Many operate on a contingency basis. If they do not deliver cost reductions, there is no fee. Additionally, refunds and other monies recovered go directly to the client.

Key Benefits

Some typical benefits of this service include:

• Free audit and assessment

• Reduce costs and eliminate unpredictable expenses

• Uncover hidden charges

• Identify and correct overcharging and excessive costs

• Effective and efficient services save the client money

• Achieved savings are never at expense of quality or service

• Improve cash flow and profitability

• Improve morale and employee retention

• Streamline internal processes

• No interruptions to a hospital or business routine

• Confidential review of closed business records

• Professional guidance in determining a client’s optimal spending level

Even the best-managed companies can find it difficult to achieve optimal savings across their enterprise. A little time spent on cost reduction management can stop a company from pouring literally thousands or even millions of dollars down the drain.