Page 2 - Getting a Handle on Unmanaged Spend - SIB Whitepaper

WHY YOU MIGHT BE SPENDING TOO MUCH
Recurring service costs like telecom, waste removal, treasury fees, utilities, and maintenance contracts are some of the biggest culprits when it comes to excessive unmanaged spend.
Alarge part of the problem is that for many of these services, contracts are scattered across multiple locations and/or GL codes don’t match from division to division. For these and various other reasons, it can make it very hard to even notice that a problem exists.
Customers are continually either overserved (paying for services they aren’t using) or over- charged (paying more than they should for the service) by vendors and it can be hard to tell whether you’re a victim or not. It isn’t a matter of how skilled your accounting department
is; it’s simply that many groups don’t have the bandwidth to effectively audit these expenses, creating a lack of true visibility into your spend.
If you don’t believe that your company could possibly fall into one of these categories, you may want to pause and consider this: a 2015 audit of waste disposal services across more
than 5,000 locations nationwide revealed that 94% had savings opportunities. Of these, 28% were due to billing errors or fraudulent charges, 34% were being overcharged, and 39% were paying for services they weren’t utilizing.
Mistakes like these add up quickly, costing companies millions of dollars every year without them even being aware it’s happening.
PAGE 2 Getting a Handle on Unmanaged Spend | © 2016 SIB Fixed Cost Reduction