The webinar discusses strategies for achieving in-year savings in response to cash flow issues or procurement targets. It highlights four potential deliverables: raising cash, reducing cash outflows, and bringing forward savings, all of which may have significant risks and disruptive implications. The speaker emphasizes that while actions may come at a cost, they are necessary if the business requires immediate savings.

1. FINDING HIDDEN
IN YEAR SAVINGS

2. Please note that your microphones have
been muted for the duration of the webinar.
Having technical issues?
Should you have any technical issues, please let us
know via the 'Questions' box on your GoToWebinar
panel.
Any questions for our Q&A?
Send your questions through to us at any time via
the 'Questions' box on your GoToWebinar panel
and we'll answer them in the Q&A.
Welcome to the webinar

3. Guy Allen
Managing Director & Founder,
Real World Sourcing

4. Imagine the Scenario
Its June 21st. You get a call from your Finance Director
What savings can you deliver this year?

5. Why Do We Need In Year Savings?
If the call came from the Finance Director
If the call came from the Head of Procurement
– Profit Margins are under threat and need to be improved and/or
– An Immediate Cash Flow problem
– Annual savings target looks under threat

6. A Health Warning
This webinar provides suggestions
of what could be done
However many of the options will
have significant negative impact
Consequently their inclusion here
should not necessarily be taken as
a recommendation

7. Disruption
Remember these options will be disruptive
Otherwise you would already have taken them!

8. 4 Potential Deliverables
Raising Cash
Reducing Cash Outflows
Bringing Forward Savings
The first 2 deliver real money to the bottom
line in the current year.
The final deliverable may have no impact to
the organisation’s current year P&L

9. Raising Cash
Selling Assets
Extending current supplier contracts
in return for a premium
Contributions to marketing campaign
Transfer/Sale of stock
Write off Goods Received Not Invoiced
Earlier Rebate payments
AP Audit – to search for duplicate or
payments errors

10. Reducing Cash Outflows
Increase payment days
Restrict invoice payment
Implement travel ban
Increase expenditure sign requirements
Stop buying certain categories (eg Stationery)
Hold a stock cupboard amnesty
Reduce temp agency rates by 10%
Serve notice on all temporary staff
Reduce/cancel capital investment
programmes

11. Bring Forward Savings
Hold eAuctions
– Quick to implement
– Savings can be significant
– Visible demonstration of activity
– May undermine longer term strategy

12. Extend current contracts for a price reduction now
Price arbitrage across sites/commodities
Charge premium for taking part in bidding program
Immediate price reduction from incumbent
These recommendations may make no impact to the
current P&L
But they could save the Head of Purchasing their job!

13. Risks and Implications
Message to the market place
Corporate and social responsibility
Reputational risk
Partnership with suppliers
Constraining future growth
Reducing future cost reduction opportunities

14. In Summary
Seeking in year savings can be driven
by the need for cash or the need to
meet Procurement targets
Actions will be disruptive and usually
come at a cost
But if the business needs the savings,
you have to do it!

15. Q&A
guyallen@realworldsourcing.com