With the pressures of inflation, VAT and other cost rises hitting businesses, at a time when consumer demand is also down, companies are looking to cut costs wherever they can.
But conscious that recovery is on the horizon cutting costs without thinking of the future is not a good tactic.
Instead many businesses are looking at the opportunities that are available to work with their suppliers to reduce costs, by maximising efficiencies and tapping into the economies of bundled goods and services.
Doing so not only helps to reduce cost because such bundles generally offer a combined discount, but also cuts down on administration as the number of relationships a business needs to have with its suppliers is reduced.
Alex Pettefer, Marketing Director at Loomis, advises that some companies could be missing golden opportunities by not examining what their suppliers can additionally do for them.
“When you are known for a particular service or product, businesses sometimes forget or overlook that you have more to offer.”, Pettefer advises.
“A perfect example would be Loomis, who are renowned for cash in transit business and whilst that is core to our business, we offer other services too, such as cash processing which companies will often, out of tradition simply leave to their bank to do. Yet by combining such services in a bundled package we can not only improve efficiencies and communication within businesses but dramatically reduce the associated costs - which in today’s climate is vital,” he says.
Many companies get stuck in a rut with their suppliers – either not realising that they may offer a wider portfolio of services applicable to their business or only revisiting such possibilities when it comes to contract renewal.
It certainly pays its dividends to have open discussions with your current suppliers on a regular basis to maintain an awareness of their full offering and any additional ones which they launch.