M : Maximising Profits

• Cost Reduction Analysis
• Supply Chain Effectiveness
• Financial Management
• Contract Management

Cost Reduction Analysis

If you could reduce your operating costs by 20% or more, how would you feel?
Big buying power is impressive and helps secure low prices, but most companies costs are still much higher than they need to be and that has a negative impact on your ability to maximise profits.

Our analysts are able unlock the unknown savings for our clients and provide you with access to all of the benefits we provide relating to supplier negotiations, supplier performance monitoring, detailed management information and reporting.

We prepare and open and transparent view of the market which allows you to make informed decisions which are right for you. Whether you continue to use existing suppliers or switch to new ones, you will almost certainly see a significant improvement in the value of the service you receive, regardless of whether cost savings are achieved or not.

The cost reductions we achieve are driven through professional negotiation and include a comprehensive evaluation of not only the supplier’s compliance to your specific needs but also its compliance to any industry certification requirements. We can also monitor supplier performance to ensure that consistent savings are being realised without any reduction in the quality of the products or level of service you receive.

Partnering with GMA to reduce your costs represents little if any risk. How soon you want to start reducing cost and maximising profits?

Supply Chain Effectiveness

Supply chain is a complex system that involves many system elements from various functional areas and performance of a supply chain depends heavily on the effectiveness of communication and coordination between these system elements and functional areas. However, a large and complex supply chain usually makes it difficult to coordinate and thus degrades its performance.

It is possible that your organisation’s supply chain complexities and risks have risen sharply, but your processes and systems haven’t kept up.

Complexity
You might have gone to great lengths to increase efficiency and reduce costs by outsourcing functions, but whilst the resulting supply chain has improved efficiency, it has also increased the need for tight network coordination.

Risk
News reports of suppliers going out of business, shipments held up in customs, costs subjected to large commodity price spikes, or inventories stocked with incorrect products are all too common.

Facing these heightened complexities and risks, an organisation’s success depends not only on how well it maximizes efficiency, but on how effective its supply chain network is. This requires a well-planned, measurement-driven approach to control supply chain cost and mitigate risk while ensuring compliant, efficient supply chain operations.

Our systematic approach to helping you achieve supply chain effectiveness is:

• to identify and analyse the interactions between the system elements of the supply chain
• to break down the large interdependent group of system elements into smaller, more manageable sub-groups
• to improve the structure of the supply chain system

When do you need to see an improvement in your organisation’s supply chain effectiveness?

Financial Management

As with any organisation, the management of the finances to achieve your own set of financial objectives is a fundamental part of your business to maximise profits. Whilst every organisation is unique, it is likely that you strive to:

• Create wealth for the business
• Generate cash
• Provide a good return on investment

We can take an objective look at your organisation and separate the analysis and improvement of financial management into three areas:

Financial Planning
Your financial controllers and executive board need to ensure that sufficient funds are available at the right time to meet the needs of the business. We help ensure that the right process is in place so that should funding be required in the short-term to invest in equipment and stocks, pay employees and fund sales made on credit, that it is made available an an efficient manner. Similarly in the medium and long term, funding might be required for significant additions to the productive capacity of the business or to make acquisitions and we help plan for such possibilities.

Financial Control
Financial control will help your business ensure that it is meeting its objectives and we address questions such as:

• Are assets being used efficiently?
• Are the businesses assets secure?
• Do management act in the best interest of shareholders and in accordance with business rules?

Financial Decision-making
The key aspects of your financial decision making relate to investment, financing and dividends. Investments must be financed somehow, but we help you consider financing alternative. A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. We help you consider whether dividends are too high, and whether such action would starve the business of funding to reinvest and grow.

Is your financial management adequately enabling the short, medium and long term needs of the business in its effort to operate efficiently and grow?

Contract Management

It is important that your organisation has an effective process to manage its relationship with suppliers and delivery by the suppliers. When things go wrong, the failure can be expensive for your organisation in human, financial and reputational terms.

GMA will gather and analyse data and address the following Contract Management related challenges:

• Contract preparation
• Managing service delivery and the relationship (Vendor Management)
• Contract administration
• Seeking improvements and performance management

Depending on the size of your organisation, we can analyse and improve efficiencies in all or just some of these areas. It is important to remember however, that a weakness in one area will almost certainly have a negative impact on another area in your effort to manage your supplier contracts well.

Some of the benefits that we can introduce to your organisation by improving your contract management include:

• Improved quality of service and customer focus
• Risk reduction
• More value for money and financial control
• Early identification and resolution of disputes or poor performance
• Clarification of roles and responsibilities of the contract manager, contractors, end users
• Better contract outcomes

We help ensure that your contract management is proportionate to the value, risk and complexity of the contract. For example, simple purchase contracts often suffer overkill in large organisations. GMA can help you strike the right balance for your organisation and the nature of its contracts to achieve efficient and effective contract management which ultimately helps maximise profit.

Maximising Profit > Improving Operations > Generating Growth