Cost Control

7. Consultants

7.1 External consultants can offer an advantage over purely internal cost control.

• Consultants may have up-to-date, specialist knowledge.For example, they may be acquainted with up-to-date benchmarks for your industry and current market conditions for utilities and other suppliers.
• A consultant's thinking may be able to avoid being influenced by vested interests and historical preferences within your company.

7.2 Select a consultant carefully.

• Look for membership of an established and appropriate professional body, with a published code of conduct.For example, the Chartered Institute of Purchasing & Supply (01780 756 777).
• Check references and look for evidence of a good track record, working with businesses comparable to yours.
• Find out about the consultant's financial standing and check that there is indemnity insurance cover in place.

7.3 Negotiate a clear, written contract.

• Agree what you will pay.If fees are to be based on a percentage of savings, agree how these savings will be calculated.
• Arrange when you will pay.Avoid having to make upfront payments, before you can see the results of a consultant's work.
• Insist that the consultant signs a formal confidentiality agreement.