Recognising the Opportunity

Traditionally, organisations have not focused on efficiencies within the area of indirect operating costs. The key areas have been staff (salaries, head count and labour costs) as well as goods. This is despite the fact that as much as 35%* of an organisation's revenue can be consumed by indirect operating expenses.

The overall trend for air and hotel prices has been upwards over the last few years, putting pressure on your bottom line as the indirect expense cost base increases.

In reaction to this organisations tend to reduce the amount of travel and entertainment conducted by their employees. However, this is likely to have an impact on the overall efficiency of business activities.