Cost Saving in Recessionary Times
1 February 2009
Is the need to save costs during a recession any more necessary than in so-called normal times? Discuss.
There is no doubt that financially, we are all in for a rough time over the coming months. Expenditure will be questioned; income will be analysed. The state of the nation's health will be monitored as we go into 'intensive care'. Debate will abound; action will be scarce. Will we weather the storm? Will I have a job next month; sorry next week?
Now there is a positive side to this scenario which hopefully will be less grim than the picture painted here for most of us. This is a time to take stock of all those inefficient ways we carry on using because of the effort involved (and cost) of changing them. Is this the time to get rid of the baggage and paint a better future for ourselves?
A village newsletter hit my doorstep this week containing a letter from a Local Councillor. He was explaining how local government are particularly hard pressed with reduced income from their investment portfolios and government caps on the allowed rate of rise in council taxes. Having explored just about every other means of saving money, the Council are now talking to other Councils and other County Councils to see how they can join together with joined up working to save some money. Sound familiar?
Talking with a customer this week, we were exploring the cost saving of using our management software in the CDM environment. The customer had proved to himself that using our ToolKit™ software for completing and submitting F10 forms for approximately 3 notifiable projects per week is saving his organisation around £3,500 per year. Now that's an interesting starting point.
Rather more spectacular, though, is the fact that the same customer is saving at least £44,000 per year with our internet based product. The product is now used as the primary communication for all documents concerned with major projects between architects, contractors and themselves as clients. Here, the savings are all very tangible; everyone involved saves reams of paper (literally), printing costs including toner, mailing costs, and time. Major Project Health & Safety Files now take around 5 days to assemble; less than half the time they took using more conventional methods. We made a fairly 'rough' calculation of the cost savings by producing the HSF using our software. The savings are, frankly, staggering; they mean that you could possibly afford the best part of another CDM-C depending on where in the country you happen to be - assuming of course that you could find one. Now that is good news.
But there is more! As a result of using the management software, the organisation is now in total control of the CDM process. They know where their documentation is, where compliance is an issue, how many projects are at whatever stage they need to report on etc etc. Access to information is quick and easy for everyone who requires and is authorised to have it. There is no doubt that the return on investment from the joined up working approach taken here is very effective and efficient by whatever measure you care to throw at it.
We are steadfastly working to promote Joined Up Working across London with an initiative led by Fred Robinson as reported to you last month. And we are making progress. If you would like to take part please contact us.