IEM Group, Inc.
3003 Summit Boulevard
Suite 1500
Atlanta, GA  30319

404.460.7050
www.iemcorp.com

Business Insights

Volume 5   -   October 2004


Indirect Expense Management – So What?

 We all know what indirect expenses are – basically any payables expense that does not fall into direct costs of manufacture.  The challenge is that every function has responsibilities for spend and usually no one is looking at all of them.  For example, does anyone review this list in your company? 

 

Finance

 

Technology

 

Human
Resources

 

Sales &
Marketing

Taxes
A/P Recovery
Insurance
Leasing
Treasury
Consultants
Outsourcing

 

 

Telecom
Hardware
Software
Data Center
Technology
Consultants
Outsourcing

 

 

Travel
Benefits
Temps
Training
Legal
Consultants
Outsourcing

 

Advertising
Printing
Call Center
Trade Shows
Collateral
Consultants
Outsourcing
 

 
 

Real
Estate

 

Procurement

 

Logistics

 
 

Utilities
Leasing
Development
Management
Furniture
Consultants
Outsourcing
 

 

MRO
Supplies
Capital Goods
Copiers
Fleets
Consultants
Outsourcing
Procurement

 

Audit
Pre-Pay
Warehouse
Distribution
Freight
Consultants
Outsourcing

 

How much is 50% of your payables?  Is it significant?  Are you over-paying?  Are processes documented and controlled?  Are you in compliance with SOX?

 If you are, your company will be the first that we know about!  Does this matter?  According to CFO Research Services, the subject is tied with revenue generation for improving the financial health of your business:

On the Minds of CFOs


 

                Source: CFO Research Services, August 2003

The challenge is how to manage these expenses and the ongoing process.  We believe the process is a discipline within itself.  We call it Indirect Expense Management™.  This is our business expertise.

 What are some “found money” examples? 

 

q       Do you qualify for the Georgia Job Tax Credit Program?  If so, 50 new employees could exceed $650,000 in tax credits.

 

q       Are you over-paying for IT Services, Software, Utilities, Telecom…?  We have uncovered annual savings from 10-30% in these categories.

 

q       Are your telephone and data bills correct?  In eleven years of experience, 86% of corporate telecom invoices were erroneous.  Aberdeen Group cites that “7-12% of telecom services charges are in error.”

Interested in finding out more?  Give us a call @ 404-460-7050. 

Our success is your profit.


 

Interested in making more money?  Give us a call.  There is no charge for asking!

IEM Group, Inc.    
3003 Summit Blvd.,
Suite 1500
Atlanta, GA  30319

Phone: 404-460-7050
www.kjvgroup.com

Copyright Ó IEM Group 2004 All Rights Reserved