Finding a solution to decrease costs is like performing triple bypass surgery. Sure, the process lasts longer than a mere three to five hours, but the outcomes are very similar – a longer life for the company and the individual.
Some companies tend to turn directly to their business’s core in their efforts to reduce costs. However, just as the heart is not the underlying reason to perform bypass surgery, the same may go for the heart of a company. Blocked arteries are like red ink on the financial statement. Surgery is necessary. These arteries may lie in accounting, raw materials, transportation costs, etc. Many companies do not have the resources to figure out a solution. That’s when the surgeons of the business world step in – professional sourcing experts. Their job is to find a way to restore normal money flow. Different processes are analyzed; and the most efficient and effective way to keep the heart of the company pumping is recommended. If the company wants to lead a healthier life, it should consider following the “doctor’s” orders.
Ironically, it is the health-care sector that may soon begin or have already begun to feel pressure to cut costs. I came across an article in The Wall Street Journal titled “Health-Stock Refuge No Refuge at All.” When the economy seems to be doing poorly, many investors automatically look to pour their money into health-care stocks. It is very logical, considering the necessity of the sector’s products and services. However, investors are thinking twice this time around. Health-care stocks are not performing as well as expected. The underlying problem is that more health care costs are being shifted from employers to employees.
Some companies are aware that the approach to cutting costs is not to attack the core of a business. Many companies have focused on where a good chunk of their funds are allocated – health care plans; and this is why the health-care sector is struggling. Insurers face challenges as the number of jobs offering health benefits declines. Employers are requiring their employees to pay higher premiums; and some employers are even becoming self-insured or adopting high-deductible plans. These employers have been passed the scalpel and are beginning to make some clean cuts in their spending.
Some companies tend to turn directly to their business’s core in their efforts to reduce costs. However, just as the heart is not the underlying reason to perform bypass surgery, the same may go for the heart of a company. Blocked arteries are like red ink on the financial statement. Surgery is necessary. These arteries may lie in accounting, raw materials, transportation costs, etc. Many companies do not have the resources to figure out a solution. That’s when the surgeons of the business world step in – professional sourcing experts. Their job is to find a way to restore normal money flow. Different processes are analyzed; and the most efficient and effective way to keep the heart of the company pumping is recommended. If the company wants to lead a healthier life, it should consider following the “doctor’s” orders.
Ironically, it is the health-care sector that may soon begin or have already begun to feel pressure to cut costs. I came across an article in The Wall Street Journal titled “Health-Stock Refuge No Refuge at All.” When the economy seems to be doing poorly, many investors automatically look to pour their money into health-care stocks. It is very logical, considering the necessity of the sector’s products and services. However, investors are thinking twice this time around. Health-care stocks are not performing as well as expected. The underlying problem is that more health care costs are being shifted from employers to employees.
Some companies are aware that the approach to cutting costs is not to attack the core of a business. Many companies have focused on where a good chunk of their funds are allocated – health care plans; and this is why the health-care sector is struggling. Insurers face challenges as the number of jobs offering health benefits declines. Employers are requiring their employees to pay higher premiums; and some employers are even becoming self-insured or adopting high-deductible plans. These employers have been passed the scalpel and are beginning to make some clean cuts in their spending.
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