As a rule of thumb, normally somewhere between a third and a half of an organisations spend is something we’d expect to be able to influence. Roughly half will be salaries, c. 20% will be fixed costs, (rent, rates etc) leaving around a third that we can, given the opportunity, look to help reduce the cost and improve the value of.
Of this I'd expect a minimum reduction of 15-20%, particularly if it the areas in question hadn't been formally reviewed for some time – and being mid-term in a contract wouldn’t preclude it from re-negotiation either. Most charities have this similar spend profile where a large percentage goes on what's commonly referred to as 'Indirect' goods/services such as utilities, fleet, print, IT, buildings maintenance, insurance and so on – or non-core activities & these areas are often perfect for finding savings.
Working with charities of all sizes locally and nationally only ever on a non-fee basis, to date we have freed up around £3.5M to redirect to their front-line services on numerous areas of outgoing spend. With the economic climate worsening and income and donations likely to continue to fall, reducing unnecessary costs becomes more important than ever.
Created in 2013 ProVantage is a company of MCIPS qualified procurement specialists with over 100 years’ experience, helping customers make their money go further. We work with our clients to provide a (free) thorough analysis of the current spend ‘profile’ – what’s being spent where and with whom – and how – then identify areas that we think would be likely not just to return savings, but increase the quality & streamline the P2P processes along the way.
"The ProVantage teams have used leading edge techniques, together with good “old fashioned” negotiation skills. They have succeeded in part by taking time to understand our culture and have been both sensitive and respectful to our learning disabled clients when working in our communities."
- Camphill Village Trust
"Peter offered insights into our procurement arrangements that had not been previously explored by the charity. His intervention was quick and efficient, and ultimately saved money. Well worth the effort from our perspective."
- My Life My Choice