Cost savings & Self-serving expats RES Forum Symposium 01NOV2013.

Cost savings &Self-serving expats

RES Forum Symposium

01NOV2013

2

Agenda

• Introduction

• Quick Cost Savings (tips and tricks)

• Lump sum trend

• Technology

• Future vision

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=jhLW-AtfPYtvPM&tbnid=DIueCxouOPixVM:&ved=0CAUQjRw&url=http://www.dolphinml.com/mission.aspx&ei=-ftwUpOqCImGswanjoGAAg&bvm=bv.55617003,d.Yms&psig=AFQjCNFWJr9b6jipxR8Gmp6gjwAQ-fgnEQ&ust=1383222629286182

3

Cost - RFP

• RFP business intelligence

• Provide as much information as you can

• Cost determined by efficiency

4

Cost – Define Risks ( I )

• Most common Risks:

– Exchange rate fluctuations (F/X)

• List rates in original ‘cost’ currency• Agree on fluctuation bandwidth

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=4B9PcV63adqZAM&tbnid=Z3CG1kFuqwwKxM:&ved=0CAUQjRw&url=http://www.accendomarkets.com/currency-trading/&ei=uvxwUve_OcfGtQaWroGoCw&bvm=bv.55617003,d.Yms&psig=AFQjCNEZqZowY7K9nH6UwHsHhKlSunlypA&ust=1383222774278349

5

Cost – Define Risks ( II )

– Freight costs

• Air freight:– Highly competitive,– Determined by fuel, security and direction of trade

• Ocean freight– Oligopoly market structure– Major rate fluctuations

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=34fsBuDAnulMqM&tbnid=CgyJdwaEMQ218M:&ved=0CAUQjRw&url=http://phys.org/news/2012-09-ships-energy-efficient.html&ei=lehwUoWaGszFswaSzoC4BA&bvm=bv.55617003,d.Yms&psig=AFQjCNFMxkfTAXNi2zI3IdYJb4QfYnwQFA&ust=1383217565925868

6

Cost - Insurance

• What determines an insurance (buy) premium?

• Why would an insurance premium be high?

• What is an average claim ratio?

• What should an insurance premium be?

• Why do we need insurance?

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=vrZuJ2aP32todM&tbnid=8xDpYQejWkBGkM:&ved=0CAUQjRw&url=http://mscyprus.moorestephens.com/Insurance.aspx&ei=8vxwUu_2JYSatQa77IGIDg&bvm=bv.55617003,d.Yms&psig=AFQjCNFDVpIpXl2J-CmRqWdd-mBCWbFXvA&ust=1383222874567386

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=jyXmzrOtK2_wKM&tbnid=T0DIQi_UNvSfIM:&ved=0CAUQjRw&url=http://www.cargolaw.com/2007nightmare_ital.florida.html&ei=O-xwUsnDMIKOtAau1oGoBQ&bvm=bv.55617003,d.Yms&psig=AFQjCNEw3PzStDUWedDFp372cTDkQ3XA-w&ust=1383218615776739

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=FTvK86xaQdozSM&tbnid=SxagzB9iH7_qBM:&ved=0CAUQjRw&url=http://www.theguardian.com/uk/2007/sep/27/classicalmusic.music&ei=cMlyUt-FG-qh0QXCloHQCw&bvm=bv.55819444,d.ZGU&psig=AFQjCNFZ3yJSVd7U5XJz8UhXmpmNlIA6Ow&ust=1383340750683552

8

Cost - Allowances

• Carefully consider cost effects of setting allowances

• Air / Sea / Road

• Largest traffic lane: Old World ↔ New World

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=4EwwCs579fjqxM&tbnid=PsYBpjJFnKCQhM:&ved=0CAUQjRw&url=http://www.goblin-online.net/wfrp/whworld.html&ei=Ji5yUpK_CorCswaLx4DYBw&bvm=bv.55819444,d.Yms&psig=AFQjCNET4Sx9183LMxfIP9d_c2GyiRUQhg&ust=1383300996414128

9

Transit Time – Air v.s. Sea

7107

715

24

13

11 days

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=BolFRyh0f6UVHM&tbnid=DqVSu0ZBbB13QM:&ved=0CAUQjRw&url=http://www.1001kleurplaten.nl/Voertuigen/Boot/Kleurplaat-Zeilboot-1271.html&ei=f_9wUpK8LoHYswb-o4DgBQ&psig=AFQjCNFjASC49MdtWsqWjtL0zYngoWqUFA&ust=1383223480116815

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=SLmu8bLdhEzR2M&tbnid=99xml4UlyIXd6M:&ved=0CAUQjRw&url=http://www.animaatjes.nl/kleurplaten/vervoer/vliegtuig-kleurplaat-267087/&ei=tv9wUoqcMYbXsgam_IGAAQ&psig=AFQjCNF3rB7LZveP3LWf_MCkDJNmQzAatg&ust=1383223586883252

10

Cost – Exceptions & other

• Exceptions to the policy

• Storage

• Additional charges

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=MMglm6qyLeWTBM&tbnid=LEzJJtjnF7UrOM:&ved=0CAUQjRw&url=http://www.wgnflag.com/xcart/Parking-By-Permit-Only-Sign.html&ei=xQ1xUuOOGsvJswbXxYCwDw&bvm=bv.55617003,d.Yms&psig=AFQjCNEnG7tInc90iAra1Mr0JBCSzAhtEg&ust=1383227181365176

11

Cost - DSP

• Real estate agency fees• One immigration case file• Immigration made easier• Local schools with ‘English stream’• Home search preparation• Flexible DSP packages, tailored to assignees need• Monitoring of legal / tax expert / fees

12

Lump sum

Pros

Ease of admin

Empowerment of employee

Bang for buck

Move away from paternalism

Cons

Loss off control

Insufficient paternalism

Conceptual disconnect (Gucci fund)

More expensive (loss of tax relief)

13

Technology

• Has revolutionized many industries already

• Relocation industry is slow to move with the time and protective

• Change will come

• Creative destruction will take place

14

Example of application in use today

• Own Survey

• In / exclude activities

• Plan dates / transit time

• Price

• No interaction with move manager / surveyor

• Back office monitoring of process

16

Vision

• New players: Industry can probably not organise this

• On line platforms

• Supplier criteria / independent quality seal

• Competitive environment

• Transferees log in and arrange their own relocation

• Using supplier of their choice

• Reviews/likes will be self-policing

18

More information

Paul Bernardt

Managing Director

UniGroup Relocation Network

Leeuwenveldseweg 16m, 1382 LX Weesp

The Netherlands

T: +31 294 461 012

M: +31 6 20 13 63 83

E: [email protected]

Skype: p.bernardt.ugrn

-w.UGRN.com

http://www.ugrn.com/

Cost savings & Self-serving expats RES Forum Symposium 01NOV2013.

Documents

Transcript of Cost savings & Self-serving expats RES Forum Symposium 01NOV2013.