Embracing Sustainable Procurement for Business Owners - DMT Solutions

Embracing Sustainable Procurement for Business

by BusinessCost Reduction

Sustainable procurement is more than just a buzzword. It’s a guiding principle for reshaping industries, policies, and how we all do business.

For too long, the challenges posed by climate change, habitat loss, and the depletion of non-renewable resources were ignored by corporations and governments. 

However, the tide is turning, and as business owners and directors, it’s crucial to understand why sustainable procurement matters now more than ever.

Embracing Sustainability

At DMT Solutions, we firmly believe that businesses and corporations should be a force for good, driving positive change in the world. That’s why we are championing sustainable procurement and offering our clients the tools, insights and savings they need to align their operations with sustainability goals.

A Future-Proof Approach

Sustainable procurement is not just a noble pursuit; it’s also a strategic move to future-proof your business.

Regulatory Compliance: Governments worldwide are introducing stringent sustainability regulations. By proactively adopting sustainable procurement practices, you can stay ahead of these mandates and avoid potential legal and financial consequences.

Resilience in Supply Chains: The past few years have shown us how vulnerable supply chains can be to disruptions. Sustainable procurement diversifies your sources and ensures that your supply chain is more resilient, reducing the risk of business disruptions due to climate events or other crises.

Enhanced Reputation: Consumers are increasingly conscious of the environmental and social impact of a company’s footprint. Companies demonstrating a commitment to sustainability through procurement practices can add to their brand’s reputation and attract eco-conscious customers.

The Financial Upside: Often, there is a misconception that sustainability comes at a high cost. Sustainable procurement solutions often lead to financial benefits.

Examples of sustainable procurement include environmental legal compliance and target setting, the removal of hazardous materials, waste and carbon emissions across the supply chain, and thorough vetting of suppliers for fair labour practises.

It’s a win-win scenario: cost savings and a smaller environmental footprint whilst contributing to a greener future.

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Sustainability-and-consumers-DMT-Solutions

Sustainable Procurement – Why it Matters

In today’s rapidly changing business landscape, sustainable procurement is a critical priority for businesses of all sizes and industries. 

It represents a strategic approach to sourcing goods and services that not only considers traditional factors like cost and quality as well as environmental, social, and ethical considerations.

Here’s why sustainable procurement matters more than ever:

  1. Risk Management and Reputation Enhancement: Engaging with suppliers or customers involved in unethical practices, such as child labour or pollution, can have severe financial consequences and damage a company’s brand image. Sustainable procurement safeguards against these risks, helping preserve your organisation’s reputation and financial stability.
  2. Cost Optimisation: Implementing sustainable procurement practices can also yield cost savings for your company and its supply chain. Cost optimisation translates into a competitive edge by offering attractive pricing to clients compared to competitors who haven’t embraced sustainability. Examples of cost-saving measures include green energy efficiency initiatives, on-site solar energy generation, and waste reduction programs – valuable in today’s era of historically high energy costs.
  3. Revenue Growth: Consumers and corporate buyers are increasingly mindful of the environmental and social responsibility of their suppliers. Public sector procurement regulations have evolved to require evidence of environmental and Corporate Social Responsibility plans and targets for tenders over a certain value threshold. The shift in buying behaviour has a profound ripple effect throughout supply chains, potentially boosting your sales revenue as you align with these sustainable values.
  4. Future-Proofing Against Risks Developing sustainable procurement practices equips your organisation to navigate supply scarcity and adapt to changing social, economic, and environmental factors. A forward-thinking approach helps mitigate risks associated with an uncertain future.
  5. Fostering Eco-Friendly Supplier Relationships Ethical buyers can showcase their commitment to sustainability by sourcing products and services from suppliers with ethical and eco-friendly practices. Encouraging the growth of eco-supply chains also contributes to price reductions as suppliers leverage economies of scale.

Prioritising sustainability in your supply chain will reduce risks, enhance your brand’s reputation, and cut costs but positions your business for growth in an evolving marketplace. Embracing sustainable procurement isn’t just a choice; it’s a strategic imperative for the future.

Conclusion

In conclusion, sustainable procurement is not just a moral obligation; it’s a smart business move. It positions your company for long-term success by aligning with evolving regulations, strengthening your supply chain, and improving your financial bottom line. 

At DMT Solutions, we believe in being the change we want to see in the world, and we invite you to join us on this journey towards a sustainable, prosperous future, whilst helping your business to reduce costs by as much as 75% through our sustainable procurement. 

Together we can make a difference, one procurement decision at a time.

Partnerships for Positive Impact

DMT Solutions is not just talking the talk; we’re walking the walk. We understand that sustainable challenges bring about opportunities for businesses, communities, and people to thrive. That’s why we’ve taken significant steps to make a positive impact to accurately measure our carbon footprint and offset our CO2 emissions. We’ve partnered with 1001trees.uk. The collaboration ensures that we are taking tangible steps to combat climate change.

Carbon Negative Commitment:

We recognise the urgency of addressing carbon emissions. DMT Solutions has taken the bold step of becoming carbon-negative, which means we not only reduce our carbon footprint but are actively offsetting more emissions than we produce.

Business Budget 2024 - DMT Solutions

Business Budget 2024

by BusinessFinanceNews

The Business Budget for Spring 2024 was announced by the UK government on the 6th March.

Here are the key announcements for businesses:

  • National Insurance – The main rate of Class 1 employee National Insurance Contributions (NICs) will be cut from 10% to 8%, taking effect from 6 April 2024. For the self-employed, the main rate of National Insurance will be cut to 6%
  • VAT registration threshold – The VAT registration threshold will be increased from £85,000 to £90,000, and the deregistration threshold from £83,000 to £88,000, freezing them at these levels. These changes will apply from 1 April 2024
  • Extension of the Recovery Loan Scheme (RLS) – The Recovery Loan Scheme has been renamed the Growth Guarantee Scheme and extended until the end of March 2026. The scheme offers a 70% government guarantee on loans to SMEs of up to £2 million in Great Britain, and £1 million in Northern Ireland
  • VAT Retail Export Scheme – The Government is reviewing the Office for Budget Responsibility’s (OBR) findings on the impact of the removal of tax-free shopping and welcomes further submissions on this issue.
  • Consultation on extending full expensing to assets for leasing – Draft legislation on full expensing to assets for leasing will be published shortly. Full expensing will be extended to assets for leasing when fiscal conditions allow
  • Replacing Non-UK Domicile tax rules – This measure abolishes the remittance basis of taxation for non-UK domiciled individuals and replaces it with a residence-based regime. Individuals who opt into the new regime will not pay UK tax on any foreign income and gains arising in their first four years of tax residence, provided they have been non-tax residents for the last 10 years. This new regime will commence on 6 April 2025 and applies UK-wide
  • Film Studios Relief – Eligible film studios in England will receive a 40% reduction on gross business rates bills until 2034. The relief will be implemented as soon as possible, and bills will be backdated to 1 April 2024.
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  • Expert advisory panel on R&D Tax Credits relief – HMRC will establish an expert advisory panel to support the administration of the R&D tax reliefs
  • Accelerated Planning Service – The Government is publishing a consultation on the proposed design of the new accelerated planning service as well as new measures to constrain the use of extension of time agreements and identifying local planning authorities who are using these excessively
  • Digital Planning – Building on work to digitise the planning system, a new pilot will use Artificial Intelligence to help speed up the development of local plans
  • Vaping Products Duty – A new duty on vaping products will be introduced from 1 October 2026, with registrations for the duty opening from 1 April 2026
  • Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibitions Tax Relief (MGETR) – From 1 April 2025, the rates of TTR, OTR and MGETR will be permanently set at 40% (for non-touring productions) and 45% for touring productions and all orchestra productions. The sunset clause for MGETR will be removed
  • Enhanced credit for UK independent film – A UK Independent Film Tax Credit will be introduced at 53% on qualifying film production expenditure. This enhanced Audio-Visual Expenditure Credit will be available for films with budgets under £15 million that meet the requirements of a new British Film Institute test
  • Additional tax relief for visual effects – The credit rate for visual effects costs in film and high-end TV will be increased to 39% from April 2025, and the 80% cap will be removed for qualifying expenditure for visual effects costs.
Business Budget 2024 - DMT Solutions
  • Air Passenger Duty (APD) rates – The 2025-26 APD rates for economy passengers will increase in line with forecast RPI, rounded to the nearest pound. Rates for those flying premium economy, business and first class and for private jet passengers will also increase by forecast RPI and will be further adjusted for recent high inflation to help maintain their real terms value
  • Housing in Barking and Canary Wharf – The Government is announcing investment of £124 million at Barking Riverside to unlock 7,200 homes. In addition, £118 million will be invested to accelerate delivery of the Canary Wharf scheme. This will deliver a life sciences hub, commercial and retail floor space, a healthcare diagnostic facility and up to 750 homes
  • Euston Housing Delivery Group – The Euston Housing Delivery Group will be established with £4 million to support plans to deliver up to 10,000 new homes
  • Abolition of Furnished Holiday Lettings tax regime – The Government will abolish the Furnished Holiday Lettings tax regime, taking effect from 6 April 2025
  • Capital Gains Tax: Higher rate cut for residential property – From 6 April 2024, the higher rate of Capital Gains Tax for residential property disposals will be cut from 28% to 24%
  • UK ISA – The Government Business Budget 2024 will create an additional Individual Savings Account (ISA) with a £5,000 allowance. This would be in addition to the £20,000 that can be subscribed into an ISA.
  • Artificial Intelligence (AI) Upskilling Fund Pilot – The Government is announcing a new £7.4 million AI Upskilling Fund pilot that aims to help SMEs develop the AI skills of the future
  • High-Income Child Benefit Charge (HICBC) reform – The HICBC threshold will be raised to £60,000 from April 2024. The rate at which HICBC is charged will also be halved so that Child Benefit is not fully withdrawn until individuals earn £80,000 or higher
  • PISCES – The Government Business Budget 2024 has published a consultation on a new Private Intermittent Securities and Capital Exchange System (PISCES). PISCES will be a new market that aims to support private companies to scale grow and boost the pipeline of future Initial Public Offerings (IPOs) in the UK
  • Additional pension reforms – The Government is also introducing new reporting requirements for Local Government Pension Scheme (LGPS) funds, and putting forward proposals that would require Defined Contribution (DC) default funds’ historic net investment returns.
  • Fuel duty – The main rates for fuel duties will be frozen, with the ‘temporary’ 5p cut extended until March 2025
  • Alcohol duty – Alcohol duty will be frozen from 1 August 2024 to 1 February 2025
  • Household Support Fund Extension – The Household Support Fund in England will be extended from April to September 2024

The full Government Business Budget 2024 can be found here.

Procurement Outsourcing - DMT Solutions

How Procurement Outsourcing Can Ease Financial Pressure

by BusinessFinanceProcurementSupply Chain

Procurement outsourcing is rapidly gaining traction as a strategic solution for businesses of all sizes. 

Today’s competitive business environment has changed from promotional strategies, marketing channels, and pricing methods, to how organisations adjust their strategies to compete effectively using procurement outsourcing as a strategic tool for Chief Procurement Officers (CPOs), business owners, and finance directors to alleviate pressure, optimise costs, and empower their organisations to thrive.

This blog delves into the benefits, considerations, and steps involved in leveraging procurement outsourcing to ease pressure in-house. Whether you’re feeling the strain of managing a demanding procurement process or seeking to enhance efficiency and effectiveness, this guide will equip you with the knowledge to make informed decisions for your organisation.

Is your business feeling the weight of a demanding procurement process? 

You’re not alone. Supply chain issues, one global political crisis after another, rising interest rates, global inflation, and employing the right talent and skillset meant 90% of businesses raised their prices by 10% or more last year.

Whether you’re a procurement department head, a business owner, or a finance director, the pressure to optimise costs, ensure efficiency, and manage supplier relationships can be immense. 

In 2024, procurement outsourcing is emerging as a strategic solution to alleviate these pressures and empower your organisation to thrive.

What-Is-Procurement-Outsourcing-DMT-Solutions

What is Procurement Outsourcing?

Procurement outsourcing involves partnering with a third-party provider such as DMT Solutions to manage specific aspects of your sourcing and supplier management functions.

Allowing your internal team to focus on core competencies, while the outsourced partner leverages its expertise and resources to deliver the following benefits:

  • Reduced Costs: Procurement service providers often benefit from economies of scale, allowing them to negotiate better rates of up to 75% with suppliers and potentially reduce their overall procurement spend. Additionally, you can save on overhead costs associated with hiring, training, and managing an in-house procurement team.
  • Enhanced Expertise: Access a team of seasoned procurement professionals. With more than 20 years of specialised knowledge in strategic sourcing, negotiation, and supply chain management. Our expertise can help you make informed purchasing decisions, optimise contracts, and identify cost-saving opportunities.
  • Improved Efficiency: Procurement service providers utilise best practices and cutting-edge technology to streamline the procurement process. Our services are designed to significantly reduce administrative burdens and free up your team’s time to focus on strategic initiatives.
  • Strengthened Supplier Relationships: Leverage our established supplier network and relationship management expertise to secure better deals and ensure reliable, high-quality products and services.
  • Increased Agility: As your business needs evolve, a flexible outsourcing arrangement allows you to scale your procurement resources up or down as required, ensuring you remain adaptable and responsive to market changes.
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Is Procurement Outsourcing Right for You?

While procurement outsourcing offers numerous benefits, it’s crucial to assess your organisation’s specific needs and circumstances carefully. Consider the following factors:

  • The complexity of your procurement needs: If you deal with a high volume of diverse purchases, outsourcing can be particularly beneficial.
  • Size and capabilities of your in-house team: If your team lacks the expertise or resources to handle your procurement workload effectively, outsourcing can be a valuable solution.
  • Strategic goals of your organisation: If your focus is on cost savings, efficiency, or supplier management improvement, outsourcing can support these goals.

We cover 15 core business activities including:

Taking the Next Step

If you’re considering procurement outsourcing, we must conduct thorough research on your business costs. Our proven track record, industry expertise, and a clear understanding of your requirements will benchmark your current costs and tender for the best value in pricing, service levels and value for money.

By carefully evaluating your needs and exploring the potential benefits, procurement outsourcing can be a powerful tool for easing pressure, optimising costs, and driving growth within your organisation.

How our process works

Our streamlined process is designed to make life easy.

Simply provide 3 months of existing contracts or your requirements and we’ll handle the rest.

Review

A short call to review your circumstances

Alternatives

We find the best alternative suppliers for you

Impartial

Impartial recommendations and full support

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Procurement Business Partner - DMT Solutions

Procurement Business Partner: Why Your Organisation Needs One

by BusinessProcurement

A Procurement Business Partner (PBP) is a person who acts as a conduit between the procurement function and the rest of the business to translate the needs of the business into suitable procurement language.

Imagine a world where your procurement function doesn’t just negotiate prices but actively drives business growth and innovation. 

Sounds fantastical, right? 

But with a Procurement Business Partner (PBP) by your side, this vision becomes a reality.

Think of a PBP as a strategic sidekick for your procurement team. They’re not just there to source the cheapest goods or services; they’re invested in understanding your organisation’s goals and aligning procurement strategies with them.

They bring a wealth of expertise, data-driven insights, and a collaborative spirit to the table, fundamentally changing the procurement game.

But why work with a PBP when you already have a procurement team? 

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Procurement Business Partner Team - DMT Solutions

5 Reasons why a procurement business partner makes sense:

1. Unleashing Untapped Value: Going beyond cost reduction, PBPs identify opportunities for strategic sourcing, supplier collaboration, and category management, unlocking hidden value across your supply chain. 

Imagine negotiating favourable terms with key suppliers, securing innovative solutions, and optimising inventory management – all while saving money.

2. Data-Driven Decisions, Not Gut Feelings: In today’s data-driven world, intuition just doesn’t cut it. PBPs leverage advanced analytics and market intelligence to inform crucial procurement decisions. 

They translate complex data into actionable insights, ensuring you make informed choices and avoid costly mistakes.

3. Innovation on Autopilot: Forget about sourcing the same old products. PBPs actively connect you with cutting-edge solutions and emerging technologies through their extensive supplier network and market knowledge. 

Think faster time-to-market, improved product quality, and a competitive edge you can’t buy.

4. Risk Management Superhero: From fluctuating prices to supply chain disruptions, the world of procurement is fraught with risks. PBPs act as your risk management shield, proactively identifying and mitigating potential issues.

They establish diverse supplier relationships, implement contingency plans, and ensure your supply chain remains resilient.

5. Collaboration, Not Silos: Gone are the days of isolated departments. PBPs bridge the gap between procurement and other functions like R&D, marketing, and operations.

They foster collaboration, ensure alignment with broader business goals, and contribute to a more integrated, efficient organisation.

Invest Into Your Company - DMT Solutions

Investing in a PBP is an investment in your organisation’s future. 

It’s about transforming procurement from a transactional function into a strategic powerhouse, driving value, innovation, and sustainable growth.

So, are you ready to ditch the “just-a-buyer” approach and embrace the potential of a true Procurement Business Partner?

Ready to learn more? 

Contact us today to discuss how a PBP can transform your procurement function and unleash your organisation’s full potential!

DMT Solutions has helped thousands of businesses reduce their costs and business overheads by working with our Procurement Business Partners to not only benchmark but to get the best value and lowest prices on goods and services. 

Get in touch if you’d like to reduce your business costs by as much as 75% in under six weeks.

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Online-Reviews-5-Essential-Steps-for-Harnessing-the-Power-of-Customers-DMT-Solutions

Online Reviews: 5 Steps for Harnessing Customer Reviews

by BusinessDigital Marketing

Online reviews give small business owners a golden opportunity to leverage their customers’ reviews for more sales and brand awareness.

Like word-of-mouth marketing, online reviews can significantly impact your business’s success.

According to a survey by Trustpilot, 95% of consumers trust online customer reviews as much as personal recommendations, with 92% admitting to reading online reviews before making a purchase. 

Online reviews are a game-changer for small businesses. However, with great power comes great responsibility. 

Avoiding these common mistakes and pitfalls will ensure online reviews work in your favour.

Neglecting Review Tracking

You can’t manage what you can’t see. 

Implement a tracking system (e.g., Google Alerts) to stay informed about what customers are saying online about your business. 

Monitor your business name and consider including your name, contact details, and relevant keywords. 

Awareness of where your reviews are being posted allows you to address negative feedback and leverage positive reviews in your marketing efforts.

Forgetting to Request Reviews

Don’t forget to collect valuable online reviews – don’t wait for them to happen organically. 

Many small businesses miss out on encouraging customers to share their experiences online. 

Whether through a printed card or an email, develop a routine of politely requesting customers to review your business, especially after completing a transaction or providing a service.

There are many different platforms where customers can leave reviews of your business. 

Register your business on websites such as:

Online Customer Reviews - DMT Solutions

Ignoring Review Responses

Businesses need to respond to all reviews, both positive and negative, which demonstrates their commitment to customer satisfaction. 

Seize the opportunity to showcase your exceptional customer service by thanking positive reviewers and addressing concerns from negative ones. 

These interactions can leave a lasting impression on potential customers who observe your responsiveness and may try your establishment even though another customer did not have a good experience.

Failing to Offer Offline Resolution

When responding to negative reviews, extend an invitation for the customer to contact you directly through a provided phone number or email address.

Resolving the issue in private is far more constructive than a public online exchange, which can deter potential customers and draw them out into a long public exchange.

Avoiding Argumentative Replies

Regardless of the tone or accuracy of a negative review, always maintain a calm and professional demeanour in your responses. 

Avoid public confrontations as they reflect poorly on your business. 

Focus on resolving issues privately when feasible and counterbalance negative reviews with an abundance of positive ones from satisfied customers.

Conclusion

In conclusion, online reviews are a potent tool for small businesses to bolster sales and enhance their brand’s visibility. 

Avoid these five mistakes, and you’ll harness the full potential of online reviews while fostering a positive image for your business.

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Business Costs - DMT Solutions

Slash Your Business Costs and Boost Your Bottom Line

by BusinessCost ReductionFinanceProcurement

In the face of rising costs and economic uncertainty, UK businesses are facing a pressing challenge: 

How to maintain profitability while minimising expenses. 

At DMT Solutions, we understand the unique pressures faced by UK businesses, and we’re here to help you navigate these challenges and emerge stronger.

Our team of experienced cost reduction experts is committed to helping businesses like yours identify and eliminate unnecessary overheads, streamline operations, and unlock hidden savings opportunities.

Identifying the Hidden Costs Draining Your Profits
Many businesses are unaware of the extent to which unnecessary expenses are eroding their bottom line. From bloated software subscriptions to inefficient energy consumption, these hidden costs can accumulate over time, silently siphoning away the profits you’ve worked hard to earn. 

DMT Solutions takes a comprehensive approach to cost reduction, meticulously examining every aspect of your operations to identify and eliminate these hidden drains.

Unleashing the Power of Automation

In today’s technology-driven world, automation is not just a buzzword, it’s a necessity. DMT Solutions helps businesses harness the power of automation to streamline repetitive tasks, reduce human error, and free up valuable time and resources. By automating mundane processes, you can empower your employees to focus on high-value activities that drive revenue and growth.

Business Costs Opportunity - DMT Solutions

Negotiating with Vendors: The Art of Savvy Savings

When it comes to vendor negotiations, many businesses feel powerless, often settling for unfavourable terms that eat into their profits. DMT Solutions brings expertise and leverage to the table, skillfully negotiating with vendors on your behalf to secure the best possible rates and terms. We understand the dynamics of vendor relationships and know how to extract maximum value for your business.

Optimising Your Software Landscape: Eliminating Wasteful Subscriptions

In today’s software-driven world, it’s easy to fall into the trap of subscribing to multiple applications, many of which go underutilised or are simply unnecessary. 

Conduct a thorough audit of your software landscape, identifying redundant subscriptions, outdated programs, and underutilised features. Optimise your software portfolio, eliminating unnecessary expenses and streamlining your operations.

Embracing Energy Efficiency: Saving Money, Saving the Planet

Business energy costs can be a significant burden, especially for those with large physical spaces. DMT Solutions helps businesses implement energy-efficient practices, reducing consumption and lowering utility bills. We identify areas of energy waste, recommend cost-effective solutions, and guide you through the implementation process.

Partner with DMT Solutions: Unleash Your Profit Potential

At DMT Solutions, we’re not just about cost reduction; we’re about helping businesses achieve their full potential. 

We understand that every business is unique and we tailor our strategies to your specific needs and goals.

We believe that every pound saved is a pound earned, and we’re dedicated to helping you secure the financial freedom you deserve.

With our expertise, dedication, and unwavering commitment to client success, we’re confident that we can help you unlock significant cost savings, boost your profitability, and propel your business to new heights of success.

Don’t let unnecessary costs and overheads hinder your business growth. With our proven strategies and unwavering commitment to client success, we’re dedicated to helping businesses like yours streamline operations, eliminate wasteful expenses, and achieve the financial goals they deserve.

Contact DMT Solutions today for a free cost review and embark on a journey of cost optimisation and profitability enhancement.

Together, we’ll transform your financial landscape and unlock the true potential of your business.

Procurement Act Marks Historic Transformation For UK SMEs - DMT Solutions

Procurement Act Marks Historic Transformation for UK SMEs

by BusinessCost ReductionFinanceNewsProcurement

Today, we are thrilled to announce that the Procurement Act has officially received Royal Assent, marking a pivotal milestone in the government’s commitment to fostering lasting change and prosperity.

The Procurement Act, now enshrined in law, promises to bring about one of the most significant overhauls in the history of procurement regulations in the UK.

Its far-reaching implications will empower small businesses, creating a more equitable and inclusive business landscape for economic growth and development.

Business Buying Power- DMT Solutions

Key highlights of the Procurement Act include:

  1. Enhanced Opportunities: Small businesses will have unprecedented access to a wider array of procurement opportunities, enabling them to compete on a level playing field with larger corporations.
  2. Streamlined Processes: The Act will introduce streamlined and efficient procurement procedures, reducing bureaucratic hurdles and fostering a more dynamic marketplace.
  3. Economic Empowerment: The Act’s focus on inclusivity, paves the way for substantial economic empowerment, ensuring that small businesses can play a central role in shaping the country’s future.
  4. Long-term Prosperity: The Act aligns with the government’s commitment to making decisions that lead to sustained, positive change, driving the UK toward a brighter future.

We invite small business owners and entrepreneurs to embrace this historic change as an opportunity to propel their businesses to new heights.

The Procurement Act is a testament to the government’s dedication to fostering a thriving and resilient small business ecosystem.

If you would like to make your business more competitive and want to know more about the opportunities for small businesses, please visit https://dmtsolutions.co.uk/solutions/.

Have the recent changes in legislation changed your views on the Government and Ministers?

Benefits of buying power for a Small Business - DMT Solutions

What are the benefits of buying power for a Small Business?

by BusinessCost ReductionFinance

Buying power should be a priority for UK small businesses that have been hit the hardest in the last few years by Brexit, Covid-19, the Ukraine war raising the price of goods and inflation.

Although the business outlook looks aggressive, businesses need to remain resilient and confident to overcome the next few years.

As a small business, we understand the hardship companies face when getting the best deals from suppliers. Many suppliers will look favourably and offer deals and discounts towards companies that spend more money. For those organisations that do not spend as much or are less frequent in usage, they struggle to find a supplier that can offer preferential rates, which costs time, resources and money – which is why many small businesses lose out in the buying stakes. 

Not being able to command discounts from suppliers makes it harder for SMEs to compete against competitors. 

The pandemic combined with tighter margins and rising costs, forced many small businesses in the UK to shut their doors for good. From 2021 to 2022, there were 581,824 dissolutions in the UK, an increase of 32.9% compared with 2020 to 2021, the highest number of dissolutions on record*.

Business Closure - DMT Solutions

Forward Thinking

In order to strategically advance our position and the circumstances of our clients, we became a part of the UK’s largest buying group with the buying power of an FTSE 250 company. 

As a business, by joining the buying group, we were able to reduce many different business costs and overheads, making us more competitive and enjoy superior rates and deals that were not available on the open market or to our competitors. 🙂

There are several benefits to having buying power:

  1. Discounts and better pricing: With robust buying power, our buying group are able to negotiate better prices or discounts on the products or services a business would traditionally use, such as insurance, energy, and payment terminals. The amount of money businesses have saved over the years has amounted to hundreds of thousands of pounds.
  2. Greater flexibility: Having buying power can also give you greater flexibility in your purchasing decisions. For example, you may be able to purchase in larger quantities to take advantage of bulk discounts or longer payment terms to improve your cash flow.
  3. Improved bargaining position: Buying power gives us a better bargaining position when negotiating with suppliers, thus helping you get more favourable terms and conditions, such as better warranties or more flexible delivery schedules.
  4. Increased efficiency: By purchasing the products or services you need at a lower cost, you may be able to improve the efficiency of your operations and increase your profitability.
  5. Stronger relationships: Building deeper and stronger relationships with suppliers can also be a benefit of having buying power. Stronger relations help secure more favourable terms and conditions and receive better service and support from your suppliers.
Business Buying Power- DMT Solutions

Review Time

Now is the perfect time to review your general expenses and uncover potential opportunities for savings. Here are some areas to focus on:

Fixed Costs – These are your regular, predictable expenses consistent throughout the year. If you receive any notifications of changes, take the opportunity to evaluate your options. Consider whether you can find a better rate elsewhere or adjust your sales plan to accommodate these costs.

Variable Costs – Expenses that fluctuate with usage can often be negotiated. Don’t hesitate to have a conversation with your supplier to maintain a fair price or secure a volume discount.

Investment – If you need to drive your business forward with external help or new technology, research the costs and plan for it. Helping you focus on your sales goals and plan ahead to achieve them.

By joining our buying group for free, businesses can save up to 75% on their business costs and overheads.

With such huge savings, businesses can reinvest their capital into their company for growth, saving or creating more jobs, marketing, expansion, buying more stock, and so much more.

By anticipating your future expenses, you can ensure that your sales and profits will cover them. This forward-thinking approach will give you the confidence that you’re on the right track to reach your business objectives.

If you would like to cut your business overheads, then Contact Us for a free, no-obligation business review.

*Source: gov.uk

Cashflow - Businesses Feeling The Pain - DMT Solutions

Cash Flow – Businesses Feeling Pain

by BusinessFinance

Introduction

Cash flow is the lifeblood of any business. It is the amount of money that flows in and out of the business, and it is essential to its survival.

A healthy cash flow means the business can pay its bills, invest in growth, and weather unexpected expenses. However, when there is tight or negative capital, businesses can experience real pain.

The Importance of Cash Flow

Cash flow is critical for businesses because it affects their ability to operate and grow. A positive turnover enables a business to:

  • Pay bills and meet its financial obligations
  • Invest in new equipment or technology
  • Hire new employees or give raises
  • Expand into new markets or geographies
  • Take advantage of unexpected opportunities

Causes of Cash Flow Problems

There are several reasons why a business may experience cash flow problems, including:

  • Slow-paying customers
  • Overhead expenses that are too high
  • Unexpected expenses, such as repairs or legal fees
  • Seasonal fluctuations in demand
  • Inefficient or ineffective cash management practices
Free-Cost-Saving-Review-DMT-Solutions
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The Impact of Cash Flow Problems

When a business experiences cash flow problems, it can have several adverse effects:

  • Unable to pay bills or make payroll
  • Late payments to suppliers, which can damage relationships
  • Reduced ability to invest in growth or take advantage of opportunities
  • Increased stress on business owners and employees
  • Possible legal or regulatory consequences

Strategies For Improving Cash Flow

There are several strategies that businesses can use to improve their funds:

  • Offer early payment discounts to customers
  • Negotiate better payment terms with suppliers
  • Reduce overhead expenses, such as rent or utilities
  • Increase prices or offer premium services to increase revenue
  • Implement more efficient cash management practices, such as forecasting and budgeting

The Role Of Financing

Financing can also play a crucial role in helping businesses improve their liquidity. Some financing options include:

  • Short-term loans or lines of credit to cover unexpected expenses
  • Factoring or invoice financing to access cash tied up in accounts receivable
  • Equipment financing or leasing to spread out the cost of expensive equipment
  • Merchant cash advances or revenue-based financing to access capital based on future revenue projections

Risks and Considerations

While financing can be an effective way to improve capital, there are also risks and considerations to keep in mind:

  • High-interest rates or fees may make financing more expensive than other options
  • Depending on the type of financing, it may require collateral or personal guarantees
  • Taking on too much debt can hurt the business’s credit score and future borrowing ability
  • Failing to repay financing can lead to legal or financial consequences

Case Study: A Business in Pain

XYZ Company is a small manufacturing business struggling with cash flow. They have several slow-paying customers and have had unexpected expenses in the past year, including a broken piece of equipment and a legal dispute with a supplier. 

As a result, they have been unable to invest in new equipment and postponed expansion plans.

Solution for XYZ Company

To address its money problems, XYZ Company could consider several strategies, including:

  • Offering early payment discounts to customers to incentivise faster payments
  • Negotiating better payment terms with suppliers to improve financial resources
  • Reducing overhead expenses by renegotiating rent or utilities
  • Applying for a short-term loan or line of credit to cover unexpected expenses
  • Factoring their accounts receivable to access cash tied up in unpaid invoices.

Conclusion

Cash flow problems can cause real pain for businesses, but some strategies can help. It’s vital for businesses to regularly assess their cash flow and take action when necessary to ensure their financial health.

This may involve implementing more efficient cash management practices, exploring financing options, or making difficult decisions to reduce expenses. 

By taking a proactive approach, businesses can improve their cash flow and position themselves for long-term success.

Contact Us for a FREE Business Cost Review. We aim to increase business cash flow by up to 75% within six weeks.