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Process costs: Undiscovered savings potential for all companies

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Process costs: Undiscovered savings potential for all companies

09.11.2022

4 mins

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What can companies do in difficult times?

Discover the options that Flowers offers you

Many companies have already gone through some difficult times, and yours has probably been through too. But this economic crisis has another dimension: It is now about resources. Raw materials, skilled workers or energy: Everything is becoming scarcer, more expensive and takes longer.

So what can companies do, what can they do? Clear answer from Flowers: You must deal with modern corporate organization, process costs and automation.

Because many areas in companies have already been optimised:

  • Purchasing has negotiated the best prices and concluded framework agreements. There isn't much savings potential hidden here anymore — on the contrary, prices are likely to rise despite everything.
  • In the area of human resources, every redundant position was cut. Most companies are desperately looking for employees. The rising costs necessarily also have an impact on salaries — there are no savings options here either.

64% potential savings in process costs

The last remaining lever for companies is process costs. There is an average savings potential of 64% here, primarily through optimizations, reduction of complexity and ultimately also through automation.

Process costs refer to the costs associated with operational processes and attributable to these processes.
However, they are not as visible as, for example, costs of goods or payslips. For this reason, process costs are ignored by many companies. It often seems too complex, too fragmented and too “new” to improve something in this area.

By saving on process costs, you also reduce material and personnel costs

If you look at the hidden potential of process costs, you will quickly discover that this also allows you to find new opportunities to reduce costs in traditional cost categories (material and personnel costs).

  • Workflows:
    Faster, simpler and automated work processes ensure that resources and goods can be used to plan better. Delays and incorrect planning are reduced and storage costs are reduced.
  • Staff:
    Staffing requirements are changing. Automated processes can also be used to entrust tasks to people outside the specialist field. This reduces personnel costs and provides access to a larger personnel market.

Is there savings potential in isolated solutions, i.e. single-solution tools?

Many companies have invested in stand-alone solutions over the years. Bought one tool at a time to solve one problem or process at a time. This was often done without a real strategy, more situationally.

Single-solution tools still benefit from a simple cliché that sticks in people's heads: A tool that was only built for one purpose must solve it in the best possible way. But it often doesn't. The disadvantage of single-solution tools is that they were only made for companies that can change their processes internally in such a way that they adapt to the tool.

What happens can be represented as follows:

  1. A company purchases numerous single-solution tools.
  2. The tools need to be paid for, trained, connected (interfaces) and maintained.
  3. After the first tools, the company realizes that these applications lead to more complexity, not less. The system landscape is implemented in a fragmented manner. The employees of the companies are now primarily concerned with managing the tools and solving one problem at a time.
  4. When you look at the costs, you notice that they add up very quickly.
  5. Only now is the question of whether there isn't a software that can solve multiple problems, is flexible and can adapt to changing company requirements.

With a tool without detours to the goal

Many companies would have saved themselves costs, effort and countless hours of work if they had first asked themselves: What problems do we have to solve, which processes to structure and how do we approach them one by one?

Do that! With such a strategy, you can skip steps 1-5 above and bet on the right horse right away.

Because that's when you'll find Flowers. Our software solution is precisely designed to solve multiple problems. It is flexible and adapts to changing company requirements. You'll find that this tool costs around a tenth of what you spend on dozens of other tools each month while delivering the same functionalities.

Just one solution for a tenth of the cost

Let's look at the costs: Single solution tools are tempting at first glance. For a few euros (per user per month), a problem should be solved. However, a few euros quickly turn into significant amounts: Here an upgrade, there is another user, here an additional module (which you need, for example, because otherwise you cannot connect another tool)... This can easily become a cost trap.

For example, a company each uses a tool for:

- Contract management

- Human resource management

- Digital signatures

- Invoice approval

- document management

- Invoice approval

- Fleet management

- device management

- Customer relationship management (CRM)

What can the company do, what can you do better? Consider your process costs and develop a digitization strategy. And then use Flowers.

Use flowers: solve problems and save (not just process) costs

At Flowers, we believe that truly good software solutions must not only look at problems in a superficial way, but also uncover, understand and solve them down to the root. With a fundamentally new, flexible structure, numerous problems are solved simultaneously. This often happens better than with stand-alone solutions, but above all, it is adaptable and scalable.
Make the right strategic decision: Flowers covers the functionalities of island solutions at a fraction of the cost!

Make an appointment with us today: Book a demo

Download: Invoice approvals in no time at all: here

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