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Hard work is no guarantee of profit: here is how to stop money from leaking out of your business.
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Leaky taps cost a fortune. That was the case in the 70s and 80s when it literally concerned drinking water, and it still holds true today when you consider all the unnecessary costs your company incurs. In his expert blog, Ronald Batenburg makes you aware of all the leaks in your company and also explains how to plug them.
The 'Leaky taps cost a fortune' campaign is a well-known Dutch public campaign from the 1970s and 80s. This slogan was used at the time by the Ministry of Housing, Spatial Planning and the Environment (VROM). The aim of the campaign was to make the Dutch aware of unnecessary water consumption and the waste of drinking water due to leaky taps. It fit into a broader context of awareness campaigns regarding energy and water conservation that were gaining momentum at the time due to, among other things, the oil crisis and the growing attention to the environment and sustainability.
To me, the same leaking tap is a metaphor for costs that leak away unnoticed from an organisation's profit and loss account, thereby negatively impacting the organisation's return on investment. A waste, then, but what causes this and what can be done about it?
Why do organizations leak money?
The problem often starts with suppliers and procurement. Suppliers want to make a profit, which is logical, but that does not always mean they offer the best deal for your organisation. At the same time, internal buyers often lack the market knowledge to negotiate effectively. Strategic procurement categories receive attention, but the 'less glamorous' cost items often remain untested. As a result, myths and inefficient practices persist.
In addition, the lack of benchmark data plays a major role. Without comparative material, it is difficult to identify overpriced services or products. And if you have a low purchasing volume, your negotiating position is often weak. In short: it is a perfect breeding ground for hidden cash leaks .
What can you do about it?
1. Map out your cost structure
Start by collecting data on your largest expenses. Look beyond the well-known categories and zoom in on indirect costs such as fleet management, insurance, transport, facility services, IT licenses, and maintenance. Significant savings are often possible here.
2. Compare and benchmark
Use market data to see where you deviate from the norm. This gives you the power to hold suppliers accountable for their price-quality ratio.
3. Strengthen your purchasing knowledge
Invest in developing market insight within your organisation. A well-informed buyer can close better deals and avoid unnecessary costs.
4. Negotiate smartly
Don't be guided by volume alone, but look at total value. Sometimes a supplier with a slightly higher price still delivers a higher return due to better service or innovation.
5. Make cash leaks visible
Just as exposing a leaking faucet helps save water, insight into hidden costs helps save money. Use dashboards and reports to continuously monitor your expenses.
Unnecessarily high costs
Een klant van ERA Group had een jaaromzet van tientallen miljoenen, maar een winst die nauwelijks boven de 1 procent uitkwam. Door samen te kijken naar de inkoop van niet-kernactiviteiten – denk aan schoonmaak, beveiliging en IT-diensten – ontdekten we dat er flinke overschrijdingen waren. Leveranciers rekenden tarieven die 20 tot 30 procent boven de markt lagen. Door deze kosten kritisch te heronderhandelen en processen te stroomlijnen, steeg de winstgevendheid aanzienlijk zonder dat de kwaliteit daalde.
Hard werken is belangrijk, maar het is geen garantie voor winst. Door kritisch te kijken naar je kosten, leveranciers en processen kun je met minder inspanning meer resultaat behalen. Focus op de winstmakers in je portfolio en dicht de lekken in je organisatie. Zo houd je meer geld over om te investeren in groei en innovatie.
Start vandaag nog met een kostenanalyse
Maak een lijst van al je leveranciers en diensten. Vraag offertes op en vergelijk ze met marktprijzen. Betrek je team bij het signaleren van inefficiënties. Kleine verbeteringen kunnen al snel grote impact hebben.
Met deze aanpak voorkom je dat je organisatie onnodig geld laat weglekken. Net als bij een lekkende kraan geldt: hoe eerder je ingrijpt, hoe groter de besparing. En dat is winst die je organisatie hard nodig heeft.
