OUR LATEST INSIGHTS

Up to date, high-level business information that is relevant to our clients and contacts, helping keep up to date on the ver-changing business world of today.

Cal Wilson / September 22, 2022

A Thank You Letter from Community Shelter Services, Erie, PA

September 2nd, 2022

Dear Adam,

On behalf of Community Shelter Services, thank you for your support of the Housing ‘Fore’ All Golf Tournament that benefited our agency. Your sponsorship helped our event be a great success and raised over $50,000. The kindness and generosity of sponsors such as yourself provides the moral and financial support needed to continue our mission of aiding the homeless and helping them transition into permanent housing.

Your willingness to help your neighbors in need makes all the difference for their better future and your continued support means that you understand just how important our work is in the community. Especially now as the cold winter months approach, we depend on caring people like you to help fund our essential programs.

If you have any questions, please don’t hesitate to contact e at [email protected]

We send you our heartfelt thanks again, and truthfully, we could not do this without you.

Sincerely,

Katie Confer

Development Director

Community Shelter Services

Read as PDF.

Cal Wilson / September 21, 2022

Advice from Gartner: 7 Cost-Reduction Mistakes to Avoid

The following article was shared by Gartner on August 17th, 2022:

7 Cost-Reduction Mistakes to Avoid

Contributor: Jackie Wiles

Be ready with productive options when your CFO asks for cost reductions.

Many executive leaders will need to make trade-offs in their spending to tackle today’s triple squeeze of persistent inflation, supply chain disruptions and a tight labor market. But common missteps in cost reduction can undermine even structured programs designed to optimize cost decisions strategically.

“Many more CFOs will start to look for cost reductions if high inflation persists or if there is a risk that higher interest rates will weaken the demand-side of the economy,” says Randeep Rathindran, Vice President, Research, at Gartner. “Executives should scope now where to secure cost reductions while avoiding seven common mistakes that make it difficult — and potentially impossible — to pursue growth ambitions in the longer term.”

Error No. 1: Making blanket cuts with unrealistic targets

Fewer than half (43%) of leaders actually achieve the level of savings they set out to in the first year of cost reduction. Unrealistic targets are the problem.

Across-the-board cuts penalize the more efficient parts of your organization (demotivating those teams) and can result in eroding important sources of value.

Error No. 2: Failing to sustain behavior change

Only 11% of organizations can sustain cost cuts over a three-year period. This is because most cost-cutting strategies are short term and fail to preserve the behavioral change required for smart spending decisions in the future.

Although some costs (such as travel and expense) can be capped by policy rules and restrictions, many removed costs inevitably creep back in as budget owners and managers pursue spending and initiatives in the name of supporting growth. The result is another painful round of cost reductions when the next crisis hits.

Error No. 3: Slowing down the organization

Only 6% of organizations consistently invest in growth opportunities without creating excessive complexity. Because of the premium many organizations and their investors place on top-line growth, executive leaders tend to have a blindspot when it comes to complexity.

Complexity drives almost half of the growth in corporate overhead costs. From introducing too many incremental variants of existing products to investing in scope-additive business lines or elaborate management hierarchies, complexity creates:

Direct costs, such as excessive inventory holding or warranty costs from supporting too many product varieties and SKUs
Indirect costs in terms of slower decision making

Error No. 4: Choking off needed innovation

Only 9% of organizations create enough capacity to take on the growth and innovation opportunities they pursue. Aggressive cost reductions can drain resources from high-impact innovation projects or indefinitely delay funding to a point where competitors can hurdle your organization in the market.They can also promote an environment where innovators don’t feel permissioned to request enough multiyear funding required to ensure their initiatives are successful.

Error No. 5: Missing the boat on digital

Among CFOs polled in July 2022, 66% said they planned to increase investment in digital technology in the ensuing 12 months, and another 32% said they would maintain such spending. That’s the highest percentage of any spend category, reflecting the ongoing need to prioritize digital acceleration as a way to:

Permanently reduce the cost of doing business (especially to fight inflation)
Improve customer and employee experience
Outperform competitors during the looming downturn

However, realizing value and scale from IT initiatives requires an actionable digital-investment model and a clear understanding of enterprise digital strategy.  A productive CFO-CIO partnership is also critical to ensure funding continues to flow to critical digital initiatives.

Error No. 6: Rushing into unfair contracts with providers

Two in five IT leaders regret technology purchases due to unfavorable terms or overpriced fees. It is imperative for an organization to acquire the right set of technologies to support its digital transformation or speed up business processes. However, limited budgets, coupled with pressure to invest in new and disruptive technologies, can drive leaders to invest in technologies that require unforseen implementation costs, generate new inefficiencies and generally fail to meet expectations, wasting potentially millions in economic resources.

Vendor negotiations are a key part of cost optimization strategies, and today’s high levels of inflation make it even harder to tell if your vendors are tying price increases to their costs or are simply trying to maintain their margins. Make sure to negotiate not just prices but terms and conditions.

Error No. 7: Introducing harmful risks to the organization

Under budget pressure, executives typically look first to lower costs in their direct area of responsibility, such as their function, but it’s critical to consider, too, whether those cost-reduction actions would create or exacerbate risks that threaten the organization’s value proposition.

Examples:

  • Cybersecurity. Underinvesting in cybersecurity may keep IT costs low but raises the risk of a major cybersecurity incident, like a ransomware attack or a headlining breach, which would be unacceptable to shareholders, customers or partners. Managing the impact of a major cybersecurity incident is itself very costly.
  • Supply chain. Reducing inventory levels across the entire product portfolio can improve the organization’s short-term cash position but erode supply chain performance, putting customer service levels at risk for items that generate greater value for the organization.
  • Talent. Cost-cutting initiatives and deinvestment can damage employee experience, which is critical for employee engagement and productivity. Understanding that impact can help you avoid rash decisions that could damage key talent outcomes in the long term. This is especially important today, when certain talent is scarce and costly.

In short:

  • Cost reductions will likely be on the agenda in coming weeks and months as organizations navigate a range of economic headwinds.
  • Knee-jerk action to reduce costs can have unintended consequences for the longer-term health of your organization.
  • Consider now how you can reduce spending without risking digital initiatives and other growth strategies later.

This article has been updated since its original publication in December 2020 to reflect new events, conditions and research.
Randeep Rathindran, VP and Team Leader, has a primary research focus on the Chief Financial Officer and FP&A leader role, Financial Data and Analytics, Investor Relations, and Finance Technology Optimization key initiatives.

Cal Wilson / September 13, 2022

Step Up to the Plate 5

On Aug 27 the Dads of Milton (DoMs) hosted the “Step Up to the Plate 5” event in support of Nelson the Giant and their #Thumpoutbullying campaign. Michael was busy shagging fly balls in the outfield like a kid again at the annual Home Run Derby event.

Over $14,000 was raised for this amazing cause.

Cal Wilson / September 1, 2022

Recommendation Letter for Breakiron Jewelers

To Whom It May Concern:

My wife recently asked me to have some of her jewelry cleaned and repaired, so I stopped in to Breakiron Jewelers to see if they could help and I left very impressed with the level of service they provide.

Breakiron Jewelers is a family owned, second-generation jewelry store in Erie, PA run by the incredibly friendly Linda Breakiron.  Showcasing jewelry for every occasion, they have beautiful displays of traditional jewelry and also offer the ability to custom make jewelry for their customers.  With nearly 60 years in business, they have undeniable expertise and are recognized as one of Erie’s top jewelers.

When I visited the store, the staff couldn’t have been friendlier.  Not only did they offer complimentary cleaning, but when they looked at all of my jewelry, they explained what they could do to repair it, and even made recommendations on what I could do to prevent issues in the future.  When my wife saw her jewelry restored to beautiful condition, she nearly cried.

I was extremely satisfied with the service I received, but imagine my surprise a few weeks later when I received a hand-written thank you card from Linda.  We didn’t buy thousands of dollars in jewelry, and the repair wasn’t expensive at all, but that card told me that Breakiron Jewelers cares about all of their customers – no matter how much they spend.

As a small business owner, I know how busy it can be to run a business, but that Linda still found the time to show her gratitude speaks volumes about the business she runs and that her priority is making her customers feel special.

If you want to go to an experienced jeweler, where you aren’t just taken care of, but also appreciated, make sure to visit Linda and her team at Breakiron Jewelers.  The only thing that outshines their diamonds is their service!

Yours truly,

Adam Baker

Schooley Mitchell

Download as PDF.

Cal Wilson / September 1, 2022

Volunteering to feed Ukraine with Numana Inc.


Numana is a non-profit organization located in El Dorado, KS. On August 27, 8 volunteer teams, Schooley Mitchell’s Rod Holter among them, worked to package and box meals for Ukrainians in need. In just 2 hours, over 100 cases were assembled which will feed 21,600 people. Numana will organize a packaging event for any business or charity across the United States. If you have a business, church or organization looking for a team building event, please call Rachael Topper at 316-452-5445

Cal Wilson / August 31, 2022

Schooley Mitchell & Axel Nafthal featured in the Annapolis Valley Wire

Schooley Mitchell consultant Axel Nafthal was recently featured in his local paper, the Annapolis Valley Wire. For the full publication, read here.

Helping companies save money

Schooley Mitchell identifies ways to cut business costs.

by Joey Fitzpatrick

When asked what he does for a living, Axel Nafthal has a very clear and positive elevator pitch.

“I deliver good news to my clients,” he says.

Just as consumers often pay more than is necessary for telecom and other services, so too do businesses. Natfhal works with companies to identify potential areas of savings in the various costs of doing business.

His lengthy career in the food industry prepared Nafthal with the skills of negotiating beneficial terms on behalf of clients. Nafthal worked with food manufacturers, and then later as a broker, negotiating promotional deals between manufacturers and grocery retailers.

“It’s a very competitive and challenging business,” he says of the food sector. “It was fun, but I was not sorry to see that part of my career come to a close.”

In 2016, he became a Kentville-based franchisee with Schooley Mitchell. Similar to a contingency model in the legal world – in which a lawyer represents a client and is only compensated if and when there is a successful settlement – so too is the Schooley Mitchell Model risk-free for the client.

“We help implement cost-effective solutions and cost recovery measures at no cost to the client,” Nafthal points out. “I don’t sell a product or service. I identify areas of potential savings and if the client accepts my recommendations then I share in those savings for an agreed-upon period of time.”

He works with clients of all sizes, most being in small to medium range, with somewhere between 20 and 150 employees.

“There are a lot of companies out there that can use help in cutting down their costs,” he says. “With a smaller company I might be able to save them a few thousand dollars a year, but with a larger client that might in the hundreds of thousands.”

As the largest independent cost reduction consulting company in North America, Schooley Mitchell has extensive research and analysis capabilities. The company has produced more than $450 million in savings for clients across North America.

Schooley Mitchell’s initial focus was in the telecom area, but has since expanded to include merchant services, shipping and courier, waste, electronic logging devices, eSignature, utilities, and fuel.

“We will look at a client’s monthly statements from their current provider,” Nafthal explains.

He will then begin negotiations, first with the incumbent provider.

“We will also go into the marketplace and speak with competing providers to find the best rates for the same or improved service,” Nafthal says. “In most cases, we can find savings by keeping the client with their current provider.”

After a four-to-six week analysis, Nafthal will present his client with a range of options. In about 20 percent of cases, he says, the client is already optimized, with no further savings to be had.

“Even if the client is already optimized they still receive a detailed report at no charge,” he explains. “But 80 percent of the time there are savings to be had.”

View article as PDF.

Cal Wilson / August 12, 2022

Growing your Bottom Line by Minimizing Fuel Costs

Anyone whose livelihood depends on them being on the road for extended periods knows the costs associated with being away from home can add up quickly. Food, lodging, and especially fuel are significant expenses. Indeed, fuel is the top variable expense for any fleet — often equating to  more than 75 percent of a fleet’s variable expenses.

A fleet of 500 vehicles, each driving 24,000 miles per year, accumulates 12 million total miles annually. With numbers this large, even a small change can mean big savings. In fact, if they could reduce their bills by a mere quarter of a cent per mile, this fleet would save $30,000 next year.

Due to the volatile nature of fuel prices, getting your costs as low as they can and keeping them there is very important to any trucking company. Here are some ways you can do just that:

Fuel Management Tools and Cards

Understanding your fueling patterns is important and can allow you to properly address your fuel efficiency. Often paired with traditional electronic logging devices, fuel management software can help you track how fuel is purchased, how to schedule your maintenance, and how to plan the most efficient routes. Plus, you can use them to highlight areas of high fuel consumption or difficult track, as well as fight potential theft.

Fuel cards are also excellent tools to stop abuse in its tracks, allowing managers to track fuel purchases and eliminate non-fuel purchases if they need to. They can even be used to specify the types of fuel drivers  can put in their vehicles, cutting fuel costs and saving on maintenance down the line.

Driver Behavior and Practices

There are plenty of ways that a driver can save money on fuel, simply by how they choose to operate the vehicle. Taking advantage of fuel-saving options like cruise control, cutting out unnecessary time spent idling, and reducing top-end speed can all impact your bottom line.

Driver coaching programs can teach your drivers how to avoid jackrabbit starts and anticipate stops in advance. Many companies even provide driver incentive programs to reward those who focus on implementing best practices to cut costs down the line.

Equipment and Proper Maintenance

There are tons of options you can invest in if your goal is to save your fleet cash in the long run. Aerodynamic-focused equipment such as wheel covers, gap reducers, and trailer wings can increase your fuel efficiency at relatively low cost, while a focus on fuel-efficient truck designs, high-efficiency alternators and the latest safety technologies can be more expensive, but even more impactful.

When it comes to regular maintenance, even the simplest checks can help reduce your overall fuel costs. Ensuring you keep accurate tire pressure as well as proper rotation frequency and position on your vehicles reduces the chance of bad tires hurting your fuel economy. Additionally, keeping your air filters clean will both limit exhaust emissions and overall increase your fuel efficiency.

If you’re really looking to save cash on your fuel expenses and you have the time and expertise required, fuel rebates and proper fleet card and service negotiations can grow your bottom line before any of your drivers even turn over the engine.

Cal Wilson / August 11, 2022

Check out Furbaby Pet Care!

Furbaby Pet Care is Saskatoon’s only 24/7 pet care facility. They have 9,000 sq ft of indoor space and 6,500 sq ft of outdoor play space. Lots of room for Rover to roam! They also have unique services such as canine massage and pet taxi. Their team is dedicated to giving the highest level of care and ensuring every detail is covered. Check them out!

Cal Wilson / August 10, 2022

Companies Start to Lean More on Cost Savings Amid Persistent Inflation

According to the Wall Street Journal, “Companies are taking steps to cut costs and improve efficiency after many of them relied more on boosting prices in recent quarters to offset inflation and bolster their bottom lines.”

You can read more of of what they have to say, here.

Schooley Mitchell helps businesses reduce operational expenses and grow their bottom lines, keeping them strong even in the midst of economic hardships.

Cal Wilson / August 10, 2022

Solving The Need To Cut Costs In IT And Engineering Services In A Recession

According to Forbes, “Typically as we enter recessions, companies look to quickly cut costs; that translates into laying people off and cutting back on hiring. Whereas your company may do that as a whole, CIOs and CTOs should be very thoughtful before they do that in their engineering and IT organizations because there likely will be continued demand for these services. We are still in a constrained labor market, so once a company lets these people go, it will be very hard to hire them again.”

You can read more of of what they have to say, here.

Schooley Mitchell helps businesses reduce operational expenses and grow their bottom lines, keeping them strong even in the midst of economic hardships.