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Budgeting and planning season is usually a routine time for evaluating your business priorities and associated costs. However, while some banks and credit unions have already set their 2022 budgets, others are still calculating forecasts or waiting for more data.
Too often, management teams and boards plug vendor costs into their annual budgets and forecasts without questioning whether those contracts can be improved. This is undoubtedly a more complex task than ever as we face the coming winter months and the uncertainties surrounding the lingering impact of COVID-19.
There is, however, one area that is a sure opportunity for cost savings in your budgeting cycle – vendor contracts.
Banks and credit unions tend to plug vendor costs into their budgets and forecasts without questioning whether those contracts can be improved. This is often a mistake.
The truth is, no matter what the economic conditions, it is possible to reduce vendor costs without switching vendors or impacting service levels.
Here are 5 questions to ask when it comes to vendor contracts during this critical budget season:
