C&C Newsletter Vol 1

C&C Newsletter Vol 1
I HAD NO IDEA!!!!
What a Business Doesn’t Know Can Be Costing Them – A LOT
contributed by Kirk Conole of DCI Solutions

DCI met with a media company CFO who agreed to have us apply our cost efficiency dashboard to his overhead.

What we found is similar to what we find in almost every company:

Bank Fees:

The client was using Wells Fargo who had won the business in a competitive bid. We found the bank fees were about three times higher than necessary and the earnings credit, which could have offset the entire amount of fees was just a fraction of what it should have been. Additionally, Wells Fargo AP card rebate program was giving the client about 10% of what could be earned via a more competitive rate structure.

Credit Card Processing Fees:  Most businesses are rapidly increasing the amount of payments they receive by credit card. WF processing of these B2B transactions were much higher than standard plus WF did nothing to help the client avoid many thousands of dollars in monthly downgrade penalties for their B2B transactions. DCI was able to identify $110,000 per year in savings.

Landline Telecom: The client had signed contracts three months before engaging DCI.  In this case we went back to AT&T and convinced them to tear up the newly signed agreement and give the client a new agreement but $100,000 per year lower than what the IT Director and his telecom broker had originally agreed to. If it were the IT Director’s decision to engage DCI, the decision would have been, “Not Needed.”

 401(K) Fees: The client was using a Fidelity platform, populated heavily with Fidelity funds.  We informed that client that several of these funds could be replaced with better performing, less costly funds and that administrative fees on the plan could be cut substantially, saving both the client and his plan participants tens of thousands of dollars per year. This was a surprise to the HR director who saw neither the savings nor the fiduciary liabilities existing in the benefits program.

Refunds: A variety of refunds were owed the client that were a cumulative five figure sum. The client asked, “How come we didn’t know about all this already??”

The CFO first heard of DCI eight years ago and waited seven years to engage DCI, not sure it would yield worthwhile results. His one comment after seeing the savings was, “I had no idea!”

 

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