Blog Entries tagged 'cost cutting' Blog Entries tagged 'cost cutting' http://www.cfozone.com Tue, 14 May 2013 23:53:19 +0100 FeedCreator 1.7.2 How to slash costs at the US Postal Service http://www.cfozone.com/index.php?option=com_myblog&show=How-to-slash-costs-at-the-US-Postal-Service.html&Itemid=713

If a company determined it would lose $8.5 billion in the current year, more than it had previously expected, due to lower volume of business, what would it do?

Close plants or warehouses, fire employees and orchestrate a major restructuring.

But, not the government. It just maintains business as usual, for the most part.

Most recent case in point: The US Postal Service. It said it lost $8.5 billion in the year ended Sept. 30, more than double the $3.8 billion a ye [...] stephentaub@yahoo.com Thu, 11 Nov 2010 23:00:00 +0100 US Postal Service retiree healthcare restructuring cost cutting Cash Non-profits with the biggest overheads http://www.cfozone.com/index.php?option=com_myblog&show=Non-profits-with-the-biggest-overheads.html&Itemid=713

Submitted by Adrienne Gonzalez, republished from Going Concern, Accounting News for Accountants and CFOs.

Administrative expenses are a part of any non-profit's overall operating expenses and though donors generally give to charity with the hope that their contributions will help fulfill the organization's mission as opposed to cover SG&A, Charity Navigator has a top ten of the worst offenders when it comes to admin expenses. Let's take a look, shall we?


10: [...] jobs@cfozone.com Wed, 16 Jun 2010 23:00:00 +0100 Spending expenses costs cost reduction cost cutting cash management Cash Careers/Management Strikes in China could mean lower US profits http://www.cfozone.com/index.php?option=com_myblog&show=Strikes-in-China-could-mean-lower-US-profits.html&Itemid=713

Rising labor strife in China has potentially significant implications for US companies and financial markets. The irony is that what companies want isn't necessarily the same thing that markets do.

Yves Smith over at Naked Capitalism does a good job of explaining why.

Essentially, US and other foreign companies are producing there to take advantage of low labor costs. But with strikes and other forms of upward pressure on labor costs, the advantage for such manufacturers may n [...] ronaldfink6@gmail.com Mon, 07 Jun 2010 23:00:00 +0100 workers outsourcing offshore Malaysia emerging markets economy earnings demand costs cost reduction cost cutting consumer spending China Careers/Management The benefits of painful cost cuts evaporate over time http://www.cfozone.com/index.php?option=com_myblog&show=The-benefits-of-cost-cutting-evaporate-over-time.html&Itemid=713

Companies have been slashing costs with abandon since fall of 2008--and they aren't likely to stop anytime soon. In fact, in April, 54 percent of more than 2,000 executives surveyed by McKinsey reported that they plan to reduce operating costs over the next 12 months, compared to 47 percent in February. 

Trouble is, such cost cutting seldom has much of a long-term payoff. According to McKinsey, only 10 percent of cost reduction programs show sustained results three years afte [...] annearf@aol.com Tue, 25 May 2010 23:00:00 +0100 Six Sigma operating cots cost cutting Cash Molson Coors CFO issues warning about outsourcing http://www.cfozone.com/index.php?option=com_myblog&show=Molson-Coors-CFO-issues-warning-about-outsourcing.html&Itemid=713

I'm down at the Hackett Group's best practices conference in Atlanta and just finished a video interview with Stewart Glendinning, CFO of Molson Coors, on the topic of outsourcing.

While the video won't be up for awhile, I can report that Glendinning wowed the crowd of 250 or so finance executives in attendance this morning with a frank keynote address on the subject.

Glendinning essentially warned the audience that outsourcing is hardly the no brainer that [...] ronaldfink6@gmail.com Wed, 19 May 2010 23:00:00 +0100 Technology Spending Risk outsourcing Deals cost reduction cost cutting Cash accounts payable Will treasury operations ever be centralized? http://www.cfozone.com/index.php?option=com_myblog&show=Will-treasury-operations-ever-be-centralized-.html&Itemid=713

Submitted by Niclas Osmund, republished from the Benche, a financial community for corporate treasurers. 

 A majority of treasury managers and professionals wish for more centralisation of a number of activities. For example payments, collections, liquidity structures and organisation set-ups. But, it doesn't seem to happen.

This is one of the conclusions we can draw from a survey that SEB together with GTNews has conducted every year since 2006. In the areas me [...] ronaldfink30@gmail.com Mon, 03 May 2010 23:00:00 +0100 treasury Technology efficiency cost reduction cost cutting changing role of treasurers cash management cash concerns Cash accounts receivable Dollar Thrifty shows the value of deleveraging http://www.cfozone.com/index.php?option=com_myblog&show=Dollar-Thrifty-shows-the-value-of-deleveraging.html&Itemid=713

Hertz Global Holding's $1.2 billion deal for Dollar Thrifty shows that cleaning up a corporate balance sheet can pay off. But finance executives who go to the trouble in hopes shareholders will be rewarded by an acquirer shouldn't count on a big premium.

The new executive team at car renter Dollar Thrifty spent the last year strengthening the company's balance sheet after Scott Thompson joined as chief executive in the fall of 2008 and began a tur [...] marinecole@hotmail.com Sun, 25 Apr 2010 23:00:00 +0100 premiums mergers and acquisitions leverage Deals cost cutting That Arial typeface is costing you money http://www.cfozone.com/index.php?option=com_myblog&show=That-Arial-typeface-is-costing-you-money.html&Itemid=713

Looking for an easy way for your company to save a few bucks on office supplies? Change the font in the documents you print, reports the Associated Press.

The idea is simple enough: Certain fonts use different amounts of ink. That Arial font Word formerly defaulted to actually cost you money compared to using something like Century Gothic. For example, the University of Wisconsin-Green Bay has asked its faculty and staff to switch to Century Gothic for all printed documents. B [...] mquinn@cfozone.com Tue, 06 Apr 2010 23:00:00 +0100 printing office supplies cost cutting CFOs career/management Big companies, big auditors, sitting in a tree http://www.cfozone.com/index.php?option=com_myblog&show=Big-companies-big-auditors-sitting-in-a-tree.html&Itemid=713

Hey, I got hold of some interesting data from Audit Analytics on the length of time that some US companies have had the same auditors.

The issue arises in connection with a CFO cover story on audit fees that I wrote about yesterday.

The article explains how CFOs are putting pressure on auditors to lower their fees after they climbed steadily in the wake of the Sarbanes Oxley Act. And that naturally requires some shopping around, which until now has been done primarily through req [...] ronaldfink6@gmail.com Tue, 06 Apr 2010 23:00:00 +0100 PwC KPMG Goldman Sachs General Electric Ernst & Young Deloitte cost cutting Cash Big Four Big 4 auditors auditing Accounting Why service exports won't resurrect the economy http://www.cfozone.com/index.php?option=com_myblog&show=Why-service-exports-wont-resurrect-the-economy.html&Itemid=713

I find this op-ed today on exports more than confusing. Essentially, the author, a business professor and former chief economist at the Dallas Fed named W. Michael Cox, says that President Obama's call for the U.S. to compete more effectively on that basis should not focus on boosting manufactured goods.

But it seems to me that our so-called comparative advantage in services that Cox says is a sufficient source of GDP growth has in fact put us at a disadvantage to countries such as [...] ronaldfink6@gmail.com Tue, 16 Feb 2010 23:00:00 +0100 recovery recession Obama Administration Obama Federal Reserve economy cost cutting consumer spending China CFO CEOs Careers/Management Banking AIG AT&T's results are an object lesson for the economy http://www.cfozone.com/index.php?option=com_myblog&show=AT-Ts-results-are-an-object-lesson-for-the-economy-.html&Itemid=713

AT&T's fourth-quarter earnings results show why policymakers have to spend less time focusing on short-term moves in the capital markets and more on economic fundamentals.

The company said it will increase capital spending by almost $2 billion, or 10 percent, to improve its much-maligned network by adding more cell towers and connecting them to faster fiber optic lines.

Hooray, no? Sorry, that didn't go over well with investors, who sent the stock down by almost half [...] ronaldfink6@gmail.com Thu, 28 Jan 2010 23:00:00 +0100 recovery joblessness employment economy earnings cost cutting Cash capital expenditures capex The last, best hope for controlling health-care costs http://www.cfozone.com/index.php?option=com_myblog&show=The-last-best-hope-for-controlling-health-care-costs-5588.html&Itemid=713

One of the elements of the acrimonious debate over health-care reform that I never understood was the evident sanctity of the exemption from anti-trust laws that exists for insurers.

I mean, I get the debate over the role of government in health care. Certainly there are philosophical reasons for opposing a public option, under which the government would offer a bare-bones plan to a limited number of individuals who couldn't afford private coverage. In theory at least, such a plan m [...] ronaldfink6@gmail.com Sun, 10 Jan 2010 23:00:00 +0100 health insurance health care cost cutting antitrust Stock rally reflects no real gain in corporate profits: report http://www.cfozone.com/index.php?option=com_myblog&show=Recent-market-rally-reflects-no-real-gain-in-corporate-profits-report-5488.html&Itemid=713

There's a valuable insight buried deep in this Bloomberg story, but it's difficult to ferret out. So let me help.

Essentially, the article argues that the stock market rally is a bubble, because the big rise in stock prices so far in 2009 hasn't reflected real gains in profitability. That's based on an analysis of last year's performance of the S&P 500 in terms of return on investment capital.

According to one measure of ROIC known as "economic va [...] ronaldfink6@gmail.com Sun, 27 Dec 2009 23:00:00 +0100 profits joblessness earnings cost cutting companies capital expenditures Bank earnings soaring while others fixate on costs http://www.cfozone.com/index.php?option=com_myblog&show=Bank-earnings-soaring-while-others-fixate-on-costs.html&Itemid=713

If only things were as good for the rest of the economy as they are for banks, we'd be through this recovery and on our way to the next bust.

Corporate profits rose 11 percent in the third quarter from the prior quarter to $1.36 trillion, according to preliminary data from the Commerce Department released Tuesday.

That growth, however, was disproportionately coming from financial institutions, whose earnings leapt 36 percent domestically. Profit [...] mquinn@cfozone.com Tue, 24 Nov 2009 23:00:00 +0100 profits economy cost cutting Banks Corporate lawyers seek free legal advice http://www.cfozone.com/index.php?option=com_myblog&show=Corporate-lawyers-seek-free-legal-advice.html&Itemid=713

For all those who dismiss social networks as the domain of kids and the unemployed, read on.

Bloomberg on Wednesday ran a fascinating article on the increasing use of social networks by -- wait for it -- corporate counsel. It seems cash-strapped in-house attorneys are suddenly turning to social networks to scare up free legal advice.

Beyond the obvious irony in this situation, it underscores the growing importance of social networks in gathering business intelligence. Gr [...] johngoff3@gmail.com Tue, 08 Sep 2009 23:00:00 +0100 law John Goff cost cutting compliance Recession gets businesses back to Finance 101 http://www.cfozone.com/index.php?option=com_myblog&show=Recession-gets-businesses-back-to-Finance-101.html&Itemid=713

Yesterday John Goff revealed the secrets of working capital to you. And I'm sure you were shocked to find that the best way to keep cash on hand is to speed up when you collect your accounts receivables and push back when you make good on your payables.

It's simple and effective. If you can pull it off.

Certainly we saw much-improved corporate earnings in the second quarter-at least among non-financials-even in the face of falling revenues. H [...] mquinn@cfozone.com Thu, 03 Sep 2009 23:00:00 +0100 working capital private equity financing debt cost cutting