Below is a basic example of how a 4% reduction in purchased goods and services can achieve the equivalent contribution of a 20% improvement in Sales Turnover :

• SALES

      Then                    Now                    Increase                    Extra Profit 

     £100m                  £120m                     20%                            £2m Assuming 10% on turnover

• PURCHASE COST

      Then                    Now                    Increase                    Extra Profit

     £50m                    £48m                       -4%                            £2m