In part 2 of your Savings Strategy Development Assignment copy and paste the following questions to a Word Document and answer each question using proper grammar and complete sentences.This will be a 2-3 page Word Document.
Page one: Title Page
Page two/three:This will include your questions and answers
Savings Strategy Development Questions:
- For procurement, “speaking the language of accounting” means what?
- In Part 1 you chose a particular exercise.Why that exercise and what did you learn from it?
3.Give an example of how the exercise you chose could be used within a company.
- Why is realizing cost savings in purchasing not enough?
- How do you identify areas for continuous improvement?
Part 2: Cost-Saving Strategy
- For procurement, “speaking the language of accounting” means what?
“Speaking the language of accounting” is an essential phrase in procurement since it helps individuals to account for their finances. Accounting is a unique language that makes sense to people who understand the need to perform the right math in procurement and other areas that require proper financial planning (Pfeiffer, 2012). For example, accounting is a business language since the expertise is needed in almost all business processes, such as procurement to ensure the right inventory at the right amount of money that prevents wastage. The language is not foreign and uses simple and easy to learn methods of explaining the implication of numbers in business. Thus, successful companies require employees or managers who understand the language of accounting.
- In Part 1 you chose a particular exercise. Why that exercise and what did you learn from it?
In part 1 of the assignment, I selected a savings plan to help individuals and companies save finances for future use. The choice was informed by the realization that resources and finite, and if they are not used well, they can easily be depleted. Thus, it is necessary to create a savings strategy to use finite resources efficiently. I learned that with proper planning and creating a savings strategy, one can save adequate finances from addressing future demand. For example, through saving, one can have finances to use in the future in case of lack of an income. Thus, planning and saving are arts that all individuals and companies should develop.
3.Give an example of how the exercise you chose could be used within a company.
The exercise can be useful in a company to plan for available resources and save for future use. For example, the management can intentionally identify areas of wastage by using a method such as lean methodology. The methodology helps to determine the things that waste company’s resources to lower overhead and reduce expenses (Pfeiffer, 2012). In a company where most waste is realized in printing, the company can reduce the number of printers that employees use and support resource-sharing. Such events will help the organization to reduce wastage and save enough finances for future use. The method will also improve financial management for increased profitability by working efficiently and productively.
- Why is realizing cost savings in purchasing not enough?
Realizing cost savings in purchasing is not enough since other areas should be included, such as cost reduction, cost efficiency, and smart spending. Besides, cost savings does not mean that a company or procurement manager should comprise on quality. Thus, the manager should use smart accounting and analytics to ensure that cost savings are achieved sustainably and that quality production measures remain intact (Pfeiffer, 2012). Furthermore supply chain visibility is a key factor for successful cost savings in companies. The process should be consistent and sustainable to prevent negative ramifications for the business, such as closure due to poor financial management. Thus, companies should make evidence-based decisions, align operations, and plan to achieve sustainable cost reduction.
- How do you identify areas for continuous improvement?
Continuous improvement is necessary since thinks keep changing and can affect the current plan. Besides, it is required to establish whether the current plan is achieving its goals. To identify areas of continuous improvement, I will check the savings level using the current plan and establish whether it has been achieved. If not, I will realize the need for a change. I will also use a formative evaluation to determine the plan’s ongoing impact to identify areas that require changes. Thus, continuous improvement will be part of my plan implementation process.
Reference
Pfeiffer, J. (2012). Accounting Is Not a Foreign Language: Translating the Basics of Accounting, Brown Books Publishing Group
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