Cost savings & Self-serving expats RES Forum Symposium 01NOV2013.
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Transcript of Cost savings & Self-serving expats RES Forum Symposium 01NOV2013.
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Agenda
• Introduction
• Quick Cost Savings (tips and tricks)
• Lump sum trend
• Technology
• Future vision
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Cost - RFP
• RFP business intelligence
• Provide as much information as you can
• Cost determined by efficiency
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Cost – Define Risks ( I )
• Most common Risks:
– Exchange rate fluctuations (F/X)
• List rates in original ‘cost’ currency• Agree on fluctuation bandwidth
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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
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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?
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Cost - Allowances
• Carefully consider cost effects of setting allowances
• Air / Sea / Road
• Largest traffic lane: Old World ↔ New World
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Transit Time – Air v.s. Sea
7107
715
24
13
11 days
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Cost – Exceptions & other
• Exceptions to the policy
• Storage
• Additional charges
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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
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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)
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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
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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
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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
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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
Skype: p.bernardt.ugrn
-w.UGRN.com