![\"\"](\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/05\/eProcurement-1024x397.jpeg\")
<\/p>\n[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
<\/p>\n
[\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Competition is as fierce as ever in the European financial services industry as the move toward a harmonized market over the past decade has driven down margins.<\/strong> <\/span><\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n It\u2019s Economics 101 \u2013 by pushing for transparency, competitors will undercut one another until they are either driven out of the market by the inability to reduce prices further, or they have cut their prices so low that margins become a fraction of what they once were.<\/span><\/p>\n Assuming that surviving on lower margins is preferable to being pushed out of the market, how can you give yourself a fighting chance? <\/span><\/p>\n If you can\u2019t compete on price, your only other option is to compete on cost. The ability to do this effectively may mean you stay in the game longer, or if you\u2019ve already \u201cwon\u201d the race to the bottom, you may gain back some of those lost margins.<\/span><\/p>\n What does this have to do with the Cost: Income Ratio? The CIR is a measurement of productivity, and productivity is a measurement that compares inputs to outputs. <\/span><\/p>\n If we transition this over to dollars and cents (or Euros), a bank is considered more productive if it can accomplish the same task with lower inputs (costs).<\/span><\/p>\n These costs range from paying for hours worked to fees \u2013 any cost, or opportunity cost even, that goes into a specific output.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n How does this connect to procurement?\u00a0 Finding hidden savings in your procurement process can lower cost, thereby lowering your CIR. It\u2019s pretty straightforward.<\/span><\/strong><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.17.6″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n 1.<\/strong> Conduct a spend analysis. See where your areas for improvement are and go after them. The use of a Spend Analytics solution could dramatically help you through this. 2.<\/strong> Automate your supplier management using 2019 tools such as SRM, e-Procurement solution.. 3.<\/strong> Automate your sourcing process. Manual processes take time, time takes money, and combined they drive up your CIR.<\/span><\/p>\n 4.<\/strong> Negotiate better contracts. Research from industry analysts says that as much as 2-5% of total annual costs can be saved by eliminating contract inaccuracies and non-compliance.<\/span><\/p>\n 5.<\/strong> Avoid off-contract spending.<\/span><\/p>\n 6.<\/strong> Automate your accounts payable. Best-in-class accounts payable organizations can reduce their costs to $4 or less per invoice by leveraging the right technology to automate the accounts payable process.<\/span><\/p>\n <\/p>\n While many of the above go hand in hand, any one of them can make a huge difference in your bottom line and, ultimately, your CIR.<\/span><\/strong><\/p>\n<\/blockquote>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Competition is as fierce as ever in the European financial services industry as the move toward a harmonized market over the past decade has driven down margins. It\u2019s Economics 101 \u2013 by pushing for transparency, competitors will undercut one another until they are either driven out of the market by the inability to reduce prices […]<\/p>\n","protected":false},"author":2,"featured_media":8552,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" 1.<\/strong> Conduct a spend analysis. See where your areas for improvement are and go after them. The use of a Spend Analytics solution could dramatically help you through this.\r\n<\/span><\/p>\r\n 2.<\/strong> Automate your supplier management using 2019 tools such as SRM, e-Procurement solution..\r\n<\/span><\/p>\r\n 3.<\/strong> Automate your sourcing process. Manual processes take time, time takes money, and combined they drive up your CIR.<\/span><\/p>\r\n 4.<\/strong> Negotiate better contracts. Research from industry analysts says that as much as 2-5% of total annual costs can be saved by eliminating contract inaccuracies and non-compliance.<\/span><\/p>\r\n 5.<\/strong> Avoid off-contract spending.<\/span><\/p>\r\n 6.<\/strong> Automate your accounts payable. Best-in-class accounts payable organizations can reduce their costs to $4 or less per invoice by leveraging the right technology to automate the accounts payable process.<\/span><\/p>\r\n \r\n![\"White](\"https:\/\/sourcing-force.com\/wp-content\/uploads\/2019\/04\/White-papers-1-2-1024x311.png\")
<\/a><\/p>\nWhile the list can go on, here are six ways to do it:<\/strong><\/span><\/span><\/strong><\/h3>\n
<\/span><\/p>\n
<\/span><\/p>\n\n
\r\n\r\nCompetition is as fierce as ever in the European financial services industry as the move toward a harmonized market over the past decade has driven down margins.<\/strong> <\/span><\/span>\r\n\r\n \r\n\r\nIt\u2019s Economics 101 \u2013 by pushing for transparency, competitors will undercut one another until they are either driven out of the market by the inability to reduce prices further, or they have cut their prices so low that margins become a fraction of what they once were.<\/span>\r\n\r\nAssuming that surviving on lower margins is preferable to being pushed out of the market, how can you give yourself a fighting chance? <\/span>\r\n\r\nIf you can\u2019t compete on price, your only other option is to compete on cost. The ability to do this effectively may mean you stay in the game longer, or if you\u2019ve already \u201cwon\u201d the race to the bottom, you may gain back some of those lost margins.<\/span>\r\n\r\nWhat does this have to do with the Cost: Income Ratio? The CIR is a measurement of productivity, and productivity is a measurement that compares inputs to outputs. <\/span>\r\n\r\nIf we transition this over to dollars and cents (or Euros), a bank is considered more productive if it can accomplish the same task with lower inputs (costs). These costs range from paying for hours worked to fees \u2013 any cost, or opportunity cost even, that goes into a specific output.<\/span>\r\n\r\n \r\n\r\nHow does this connect to procurement?\u00a0 Finding hidden savings in your procurement process can lower cost, thereby lowering your CIR. It\u2019s pretty straightforward.<\/span><\/strong>\r\n\r\n \r\n\r\n \r\n\r\n<\/a>\r\n\r\n \r\n\r\nWhile the list can go on, here are six ways to do it:<\/strong><\/span>\r\n\r\n \r\nWhile many of the above go hand in hand, any one of them can make a huge difference in your bottom line and, ultimately, your CIR.<\/span><\/strong><\/blockquote>","_et_gb_content_width":"","footnotes":""},"categories":[45,36,46,41],"tags":[],"class_list":["post-8551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procure-to-pay-en","category-spend-analytics","category-source-to-pay","category-supplier-relationship-management-srm"],"yoast_head":"\n