Deepak Chauhan’s Post

A brief reminder of how we boost clients’ profits by reducing their costs. We were appointed by a group engaged in the sale and marketing of electronic and industrial control products. Turning over £110 million, the UK finance director was concerned about the efficiency of its local overhead buying and asked us to review a number of areas with a view to increasing its contribution to overall group profits.  We benchmarked expenditure and, using best practice, put in place a series of national deals which reduced both prices and the scope for maverick buying in several key cost areas by between 27% and 38%. The finance director was very pleasantly surprised! He wrote us a reference saying: “I can confirm that they worked diligently and professionally, and did not cause disruption. I highly recommend their cost reduction service”. But we find that cost reductions of this sort are commonly available in many businesses of varying sizes and sectors if you know what you’re doing. DM me if you’d like to learn more about the success that we’ve had and the ways in which we can do the same for your business. #costreduction #procurement #accountancy #business #icaew #nonexecutivedirector #ned

Effective cost management is crucial for business growth. Our cost reduction consultants improve cash flow, find tax reduction opportunities, and suggest efficient procurement strategies. Start saving today! #SugarLandTX #BusinessConsultingServices #CostReduction

What is Standard Costing_ Standard costing is a system of accounting that uses predetermined standard costs for direct material, direct labor, and factory overheads. A standard cost is one that a company expects at the outset of a year under a normal level of operational efficiency. Standard costs are used periodically as a basis for comparison with actual costs. Standard costs may be termed commonsense costs. This reflects the view that a standard cost represents the best judgment of management about what costs the business operations will involve when undertaken efficiently. Standard costs are predetermined costs that provide a basis for more effectively controlling costs. Standard cost offers a criterion against which actual costs incurred by the business can be measured and analyzed. #standardcost #costing #finance #everyone #EveryoneFollow #CostControl #financehub

Cost management is vital for U.S. operations. We’ll cover efficient strategies to control costs while maximizing value. #CostManagement #BusinessOperations

Is Cost Accounting enemy Number 1 of productivity, as Goldratt said? Managers sometimes bet that their inventory of finished products and WIP will be sold at the best price. It is seen as an investment, and a simple way to boost a period's net income. But be careful. Companies can temporarily hide a throughput loss by producing more than necessary, absorbing some of their operating expenses in the inventory: the higher production levels during the period result in lower per-unit overhead and direct labor allocations for the ending inventory. So reducing inventory can hurt the net income of the period. But please don’t stop your flow improvement initiatives because of accounting distortions and short-term benefits.

‏🌟 **The Critical Relationship Between Purchasing and Finance** 🌟 ‏🔍 **Why this relationship matters:** ‏1. **Budget Management**: The Purchasing Department plays a key role in managing budgets. By collaborating closely with Finance, they ensure that procurement practices align with financial strategies, optimizing resource allocation. ‏2. **Cost Control**: Effective purchasing decisions directly impact a company’s bottom line. Finance provides the necessary insights into cash flow and financial forecasting, allowing Purchasing to make informed decisions that minimize costs. ‏3. **Supplier Relationships**: Strong financial backing enables the Purchasing Department to negotiate better terms with suppliers. Finance can assist in evaluating supplier risk and ensuring that payment terms are favorable. ‏4. **Strategic Planning**: Both departments must work together to align purchasing strategies with overall business goals. This collaboration enhances operational efficiency and supports long-term growth. ‏5. **Risk Management**: By sharing data and insights, Purchasing and Finance can better identify potential risks in the supply chain and develop strategies to mitigate them. ‏In conclusion, fostering a strong partnership between Purchasing and Finance is essential for driving efficiency and achieving organizational goals. Let’s embrace collaboration and work towards a more integrated approach! 💼✨ ‏#Purchasing #Finance #Collaboration #BusinessStrategy #CostManagement #إدارة_المشتريات #الماليه.

For better PERFORMANCE, focus on your CORE BUSINESS by externalizing your non core activities. We implement + optimize your:  • FINANCE (financial analysis and planning, business plan development and fundraising, trade finance instruments, …) • ACCOUNTING (financial, cost and budgetary accounting) • TAX (audit, optimization, advices and assistance during tax controls) • RISK MANAGEMENT AND INTERNAL CONTROl (implementation and optimization) • ORGANIZATION AND OPTIMIZATION (advices and restructuration) • LOGISTICS / SUPPLY CHAIN MANAGEMENT (implementation of supply chain management, transport, transit, customs, international purchasing, inventory management, warehouse management, …) • NEGOCIATION, INTERMEDIATION AND REPRESENTATION • INSURANCE MANAGEMENT (advices and support in better underwriting, audit + follow-up of insurance contracts and management of claims) • TRAINING (in management related fields) Get the best follow up 😊 and pay only accordingly to services you request! ☯ #Management #Performance #Solution

30 days turn around time to pay invoices by government department and entities, Is it really reasonable timeframe for businesses that do business with the state. Taking into consideration that a large number of businesses are Small Medium Enterprises. My take on this issue, I think the timeframe is not reasonable considering the fact that businesses had to wait for 30 days or even more to get paid. Most of the small businesses are forced to shut down due to lack of payment by state. My expirience as a former Director Supply chain Management in the office of the CFO at one of government Infrastructure delivery department, is that ,at the time procurement of goods and services is intiated, already budget is available to undertake such expenditure, then commitment is done immediately as the Purchisisng order is approved, therefore what is the delaly as service provider can be pay atleast at the minimum of 7 days and maximum of 14 Days. I dont see why the delay. I am raising this now since I am conducting my own small consulting firm, as most of the time we get PO's from the department and they are failing to pay in time even within the legislated 30 days, and feedbac k we receive does not justify the delay especially if one know how Government procurement and Finance system works. I think this should be revised. Whats your take as Procurement professionals and Supplier ?

Unlock the potential of strategic procurement, adopting efficiency and streamlining operations. Learn more about smarter learning strategies within our most recent blog article here – https://lnkd.in/emNab-yR #smarterspending #producrement #finance #SME

📊 Key Concepts in Business Finance & Operations 📊 Understanding essential terms can greatly improve decision-making and financial analysis. Here's a quick guide: Profit Center: 💰 A division focused on generating revenue and profits, showcasing each segment's contribution to the bottom line. Cost Center: 🏢 A support unit like HR or IT that incurs expenses but does not directly generate profit. Crucial for operational support! Cost Element: 🔍 Categories for different expenses (e.g., materials, labor), helping track and manage costs in detail. Routing: 🛠️ The process map or workflow in manufacturing, detailing each step needed to make a product. Bill of Materials (BOM): 📝 A list of materials and components required to produce a product—key for planning and procurement. Cost of Goods Sold (COGS): 📉 The total cost of production for goods sold, directly impacting profit margins. Cost of Goods Manufactured (COGM): 🏭 Total production costs for finished goods within a period, helping measure production efficiency. Understanding these concepts empowers teams to optimize processes and improve profitability. 🌟 #Finance #BusinessOperations #CostManagement #Manufacturing #Profitability