What the CFO and CPO should agree on (but don’t always address).
6 core topics for setting and achieving Indirect Cost Management goals.
Cost Management is typically a well-integrated part of business controlling, especially when it concerns strategic costs such as raw materials, capex, staff, etc. Surprisingly, this is sometimes different with indirect or Business Operating Costs because this cute cluster of fragmented expenses still usually adds up to no less than 10 - 20% of total revenue, depending on the industry. The potential impact on the bottom line is therefore vast, but at the same time also often vastly underestimated.
We believe that if a company’s cost objectives and strategies are transparent and (better) aligned between Finance and Procurement, it could unlock significant additional savings and other advantages. In this report, you will find practical suggestions and tools for an effective cost management cooperation between the finance and procurement domains.
About the author
Peter de Heer, partner with Expense Reduction Analysts in Brussels, is a senior business manager, building on a long standing international career with various Fortune 500 companies. He has accomplished a wide range of cross-functional business, procurement and general management assignments in several countries in Western and Eastern Europe as well as Latin America.
He is focused on achieving a high degree of process and value efficiency for his clients.