Auditel:
they do cost analysis… don’t they?

The simple answer to this question is yes, but cost analysis is only one aspect of what Auditel consultants do to help their clients understand, manage and lower the cost of doing business.

Total cost of purchase management:
not just simple expense reduction

The cost of doing business is increasing every year, which means profitability is being squeezed for businesses of all sizes. Across the board, from essential overheads such as energy, communications, insurance and premises, to variable office and staff-related expenses, prices are rising year on year. Legislation and changing business practices, such as the growing emphasis on ‘green’ and ethical business, only add to the financial burden.

On the face of it, there would seem to be an easy solution to the problem of increasing costs: shop around to find suppliers who sell the goods and services you need at a lower price. This is what cost analysis or expense reduction consultants do. However, this approach is fundamentally flawed because it fails to take into account costs associated with the time and expertise needed to make effective and informed procurement decisions.

This is where Auditel differs from organisations that offer simple expense reduction services. Our consultants don’t just look at headline prices; they look at the total cost of procuring goods and services to help their clients make intelligent and effective purchasing decisions. We call this approach, Total Cost of Purchase management.

Be a true consultant, not just a cost analyst

As an Auditel consultant you will work closely with your clients, as a true outsourced consultant, developing a good working relationship with them from the very first consultation. It’s vital that you get to know their business inside and out so you can provide tailor-made advice specific to their needs, rather than a simple, one-size fits all cost analysis solution. For each project, you will:

Sign an initial consulting agreement
Conduct a comprehensive review of their current and historical expenditure
Reclaim any rebates or overcharges due
Negotiate with suppliers and research the market place to find alternative providers and potential savings
Look for ways for your clients to fulfil strategic business objectives such as ‘green’ or ‘ethical’ purchasing
Implement and oversee your recommendations
Regularly review expenditure to ensure your client continues to pay the right prices for the right services
Monitor the marketplace to identify future opportunities to realise savings or improve procurement efficiency

What Next?

In this section we also cover the following topics:

How you get paid

As an Auditel consultant your basic income stream will be a 50% share of all savings you realise for your clients, usually for three years from the date each saving is implemented, but often for much longer.

To learn more about how Auditel consultants build predictable, stable income streams and to see an example fee calculation, visit the Earning Potential section of this site.

Total Cost of Purchase White Paper

Auditel’s exclusive Total Cost of Purchase Business Model goes much further than simple cost or expense reduction. Taking into account the time, cost and expertise needed to make effective and informed procurement decisions Auditel consultants carefully select the right supplier for their clients’ essential services. They have become trusted advisors to thousands of clients and continue to work with them for many years. As a result the Auditel network of over 100 franchisees continues to grow with ongoing personal development and training from a dedicated 20-person support team.