Crisis Survival Recipes Reduces

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The economic crisis that is increasingly manifesting itself in the real economy, has forced domestic companies to think seriously if not to reduce costs, so even a tight control over the major cost items their businesses. The first "attack" took upon itself the investment projects started or conceived, and personnel costs. Cut staff or reduce wages even today become fashionable. In the heat of the battle for saving some companies are starting to "cut" the most visible and reach the reduction of highly paid employees, sometimes forgetting that they were the "goose that lays the golden eggs," even in times of crisis. More far-sighted companies realizing that the crisis comes and goes, but the business is, try as it might save the collective, or at least its skeleton. In this outbreak of the campaign to reduce personnel and investment projects so far remains in the shadows so no small item of expenditure as a purchase. In terms of economic growth was simply not up to it.

Savings on procurement had little to oppose the increase in profit due to business expansion and sales growth. Better earn than economize – this there own truth periods growth. However, changing the time – changing mores. Many managers, in terms of perceived decline in demand and increased competitive pressure on selling prices, looking at the procurement organization at the enterprise, was surprised to discover huge reserves maintain profitability. In comparison with the savings on salaries of staff dismissed for purchase are enterprises thus "elephant", which they did not even notice.

You can compare the interest savings for the dismissal of 2 of 3 top managers in your company and the savings of even 5 percent reduction in the procurement budget. The result you certainly surprise you. And where it goes sometimes, these five percent or more in purchases of many leaders and if they do not know, then surely guess. As a result of simple calculations comes the understanding that in a crisis saving on properly organized procurement is comparable to the size of the company's profit demands, respectively special treatment.

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