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Cost Reduction Strategies for Mobility Professionals
By Sherman Pereira, Crown Relocations
Regional Director – Central and Eastern Europe

n a recovering economy, realizing cost-saving opportunities is more important than ever before. Staff reductions over the past 12 months have left business professionals trying to meet and hopefully exceed their goals, with fewer resources at their disposal and they are seeking new strategies to reduce costs.

Reducing Direct Costs

Direct costs such as travel, temporary accommodation, housing, etc., generate signi! cant savings opportunities through negotiation and leverage. While many organizations deploy procurement experts to produce cost savings across functional areas, global relocation companies employ similar exercises to leverage their global purchasing power. Partnering with procurement teams helps to identify savings in direct costs across the value chain and throughout the relocation process.

Organizations can leverage buying power by utilizing a “single source, one stop shop” service partner. Everyone understands the value and savings of “buying in quantity.” As a single source provider, or “one-stop shop,” Crown can provide total relocation program management from policy development and on-going counseling, support and coordination to origin and destination real estate services, shipping, etc. The client leverages its buying power by transferring the cost of ownership from multiple vendors to one holistic service partner. This approach generates process efficiencies across the value chain through a broad global footprint and breadth of in-house capabilities.

Avoiding Costly Exceptions

Managing the “tempo” of a relocation, e.g., correct timing of services, helps prevent the occurrence of unexpected situations, or exceptions, which are costly. Working with the transferee, during the briefing and planning phase of a relocation, to identify critical dates and developing a relocation plan that realistically aligns the employee’s needs with corporate objectives and budgets is a critical step in planning and controlling the costs of the assignment.

Through program administration, shipping and relocation services, mobility professionals have a complete and total view of the relocation process and can plan the most cost effective timeline. Upfront planning will reduce the time spent in temporary accommodation. And household good shipments can be transported via sea, both of which lower the costs of the relocation.

Innovative Policy Strategies

Re-structuring of policy, through innovation, alignment of assignment types with tax requirements and the use of flexible options creates the greatest savings opportunities.

For shorter-term assignments, critical tax dates should be reviewed against the planned assignment dates. Creativity in tax planning can provide advantageous cost reductions. A flexible menu of policy provisions also provides cost savings opportunities. A policy that is structured with a variety of options to suit the needs of the employee, the spouse, the children or singles, will enable employees to enjoy the support most needed or desired, eliminating benefits that may be perceived as “nice to have,” depending on the circumstances of each individual assignment.

Relocations Global Mobility experts walk the client through these critical cost saving strategies to ensure the final policy and process deliver the best value to the organization and support the transferee at the lowest possible total cost.

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