How do you know if you are getting the best price possible

As a state owned organisation, it was always assumed that they were receiving the best ‘preferred status’ wholesale rates on the goods purchased for their organisation. As a CFO in a relatively large organisation, it was difficult for Gerard Giesekam of Pillar Administration to test this assumption due to his time constraints and limited knowledge on some expense lines.

It was for this reason that Gerard relied on the services of Resources for Profit to review his current situation to determine if Pillar Administration really was receiving the best prices possible, or if there was opportunity for improvement.

What lead you to choose Resources for Profit?

When thinking back on the reason why he initially engaged Resources for Profit, Gerard recalls that they weren’t the first cost reduction specialists to come his way. Over the years Gerard has met numerous businesses who could provide a similar service to Resources for Profit, however Resources for Profit were the only ones who:

  • Were independent and weren’t associated with any particular supplier
  • Had sound knowledge in several key expense areas
  • Wouldn’t charge unless the new cost saving measure was successfully implemented

Additionally, the fact that one of the directors of Resources for Profit was an ex-CFO gave Gerard the confidence that they knew where he was coming from and what he was trying to achieve.

Gerard says that CFO’s can get distracted; they are responsible for the finances of an entire organisation and in addition to that are generally working on 3 key projects that need to be implemented in that current financial year, so it is easy for the seemingly small stuff to be ignored which is where an organisation like Resources for Profit can yield so much benefit.

They are the experts

Gerard believes that more CFO’s need to admit that they aren’t (and cant be) experts at every single expense item in the Profit and Loss statement, and should bring in industry experts when required – particularly if they don’t charge if you don’t make a savings.

The depth and breadth of Resources for Profits knowledge attributed to their successful working relationship with Pillar Administration. It meant that Gerard didn’t have to engage several different Consultants and spend his time project managing them. Resources for Profit have essentially become their one stop shop; so much so that they have worked on approximately half a dozen expense lines so far.

Exceptional service

One of the best aspects of Resources for Profit is they aren’t just an ‘in-and-out’ type company. They manage all aspects of the process; from the identification of potential savings, to the management of the tender process, to implementation, monitoring, reporting and regular meetings to discuss the project. This approach and the level of detail provided to each project gave Gerard the confidence to focus on the more high profile projects.

The results

Gerard says that in addition to their expertise, the ethical way that they work and their methodology, the reason he repeatedly uses Resources for Profit is because they get results. And if they can’t get you a significant savings, they will tell you; they aren’t in it to make money off you.

Gerard continues to be impressed at the savings. Across each of the projects Resources for Profit has worked on, they have been able to generate an average cost saving of 15-30%!