The document discusses how companies can increase profits during an economic downturn through strategic sourcing and spend analysis. It recommends that Solusoft, an IT consulting firm, offer spend analysis and strategic sourcing services to help clients identify savings opportunities. Spend analysis can reveal 12-14% in savings on average by highlighting opportunities like unnecessary spending, duplicate payments, and contracts with unfavorable terms. The document provides an example of how $14 million in annual savings could increase a company's ROI from 18% to 22%.
1. Increasing Profit during the Global Economic Crisis Solusoft’s Management Excellence Series Strategic Sourcing Best Practices
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4. Solusoft Historically: Solusoft is well known as an Oracle Database administration outsourcing services provider as well as a reseller of software like NetSuite & Oracle software licenses and support. Additionally: Solusoft is a Business Consulting & IT Solutions provider. Our seven core services include Business Technology Optimization, Enterprise Performance Mgt, Financial Mgt, Human Capital Mgt, Outsourcing, Service Oriented Architecture & Supply Chain Mgt.
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8. Increase ROI by Increasing Savings Recent Annual Report: Net Sales = $967M Operating Income = $167M Total Assets = $88M Profit Margin = 17% Asset Turnover Rate = 11 ROI = 18% With Strategic Sourcing: Savings = $14M Total Assets = $74M Profit Margin = 17% ATR = 13 ROI = 22% $14M savings equals $82.4M of new sales Or an 8.5% increase in sales
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