TheCostReductionToolispartoftheRapidFxDiagnosticToolsetForFinance/HR/SharedServicesInformation:TimPatrick(216)583-1523ForSupplyChainManagementInformation:GregRentsch(216)583-2614CostReductionTool-BackgroundInformationTheCostReductionToolwasdevelopedtoprovideclientswithahighlevelunderstandingofcurrentopportunitiesthatmayexistintheirorganization,primarilyfocusedontheSharedServicesbusinessprocesses(Finance,HumanResources,SupplyChainManagement).UsingTheBenchmarkingServicesGroup(BSG)databaseandourknowledgeofcurrent/potentialclients,wecanestimatethepotentialsavingsofdefinedbusinessprocessesinanorganization.BelowaredetailedinstructionsonhowtousethistoolaswellasadescriptionoftheRapidFxdatabase.Also,thefollowingexplanationswillbehelpfulinunderstandingtheCostReductionMatrix:1234quartilerange.CostReductionTool-InstructionsStep1Atthetopoftheworksheetyouwillseeablueboxthatcontainsclientdata.Usingyourknowledgeoftheclient,estimatethefollowinginformation:revenue,employees,APinvoices,ARinvoicesandjournalentries.NOTE:THATISALLYOUNEEDTOCHANGEONTHEENTIREWORKSHEET.Onceyouenterthisinformation,theworksheetwillautomaticallycalculateeverythingelseusingthisinformationandthedatabasequartiles.Step2ColumnsG-JrepresentthetotalcostsorFTEsthatwerecalculatedusingthegivenratios.Againusingyourknowledgeoftheclient,estimatewhichquartiletheywouldfallinto.Forexample,lookingatTotalFinanceCostasa%ofRevenue,ifClientABCwasveryhighcostandwasprobablyathirdquartilecompany,theretotalcostsforfinancewouldbe$93,545,000.Step3Onceyouhavedeterminedwhichquartiletheclientmostlikelyfallsinto,youcanuseColumnsK-Ptodeterminetheamountofpotentialsavingsfortheclient.NOTE:YOUONLYNEEDTOENTERDATAINTHEBLUEFIELDS.DONOTCHANGEANYOTHERFIELD.RapidFxDatabaseInformationTheRapidFxFinance&SupplyChaindatabaseiscomprisedofover300companiesspanningmultipleindustriesandrevenuesizes.Thedatabasewasformedbycompaniesparticipatinginindividualcompanybenchmarkingandfocusedstudiesconductedwithagroupofcompanyparticipants.TheHRdatabaseisfromtheSaratogaInstitute.>TheRapidFxbenchmarkingmethodologyensuresthedatacollectedisaccurate,completeandcomparabletotheothercompaniesinthedatabase.>TheBSGsupportsin-sitedatacollectioneffortsandconductsdetailedprocessinterviewstoensurean"applestoapples"comparisonofalldata.>Highlystatisticaltools(Ex.SPSS)areusedtocleanseeachparticipantsdata>Thedatarepresentedinthecostreductiontoolismadeupofmanycompanieswithdifferentrevenuesizes,employeesizes,andindustries.Ifyouareinterestedinlookingatmoredetailedinformation,pleasecontactTimPatrickat(216)583-1523.ClientData-thisisactualclientdatathatshouldbeenteredbythepersonusingthetool.CalculatedRatio-theseareratiosusedtocalculateapotentialcostsavings.DatabaseQuartiles-thesequartilescamefromtheRapidFxDatabase.THEYDONOTCHANGE.CostSavings-theserepresentpotentialsavingsfortheclient,dependingonwheretheyfallintheCostReductionMatrixClientData:Revenue$5,000,000,000Employee15,000A/Pinvoices150,000A/RInvoices150,000JournalEntries50,000DatabaseQuartilesProjectedTotalFinanceCostsCostSavingsCalculatedRatioRevenue1stQuartile2ndQuartile3rdQuartile4thQuartile1stQuartile2ndQuartile3rdQuartile4thQuartile2Qto1Q3Qto1Q4Qto1Q3Qto2Q4Qto2Q4Qto3Q$5,000,000,0000.29481.11721.87093.1131$14,740,000$55,860,000$93,545,000$155,655,000$41,120,000$78,805,000$140,915,000$37,685,000$99,795,000$62,110,000DatabaseQuartilesProject...
