The Expense Category Manager Has Been In Their Position For More Than Five Years

When a new expense category manager takes over, there tends to be a lot of change surrounding vendors and procedures.

Once those initial changes have occurred, the pace of change slows as long as the selected vendors are performing as expected and agreed upon.

Then the issues mentioned in sections 10 and 11 begin cropping up in the background.

Because a thorough expense category analysis has many moving parts and is very detailed and time-consuming, it’s understandable that it’s not on top of most expense category managers’ “To Do” lists.

Keep in mind that we’re talking about indirect expense categories here. Direct costs are scrutinized daily or weekly because of their impact on your business.

Indirect expense categories are not typically as large as direct expense categories. When they’re reviewed, solutions are chosen, put in place, and usually left alone unless there are issues with the product or service and/or the vendor.

That’s fine… up to a point. I already mentioned Ray Seabrook’s comment that if you never check indirect expense categories, “it’ll eat your lunch.”

Next week…Reason # 13