a day ago
Operational Blind Spots That Are Costing Businesses Millions
Nathan Rice, President of Energy Strategy, Energy CX . getty
Most leaders I talk to aren't asleep at the wheel. They're looking at dashboards, managing vendors and doing their due diligence. But over and over again, I've seen that the biggest cost drains aren't the things they're tracking—they're the ones they're not.
These are the blind spots—quiet areas of the business that bleed money without setting off alarms. They don't show up in performance reviews or investor calls, but they compound over time, and the cost is massive. Here's where I see companies lose the most without realizing it:
SaaS waste is one of the sneakiest problems I see. Teams sign up for tools as they go—marketing gets one platform, sales adds a plugin, ops gets a project tracker. It's all well-intentioned, but it adds up fast.
Most companies have no idea how much they're spending on software they're barely using. I've seen entire stacks where people were paying for overlapping tools or using 30% of the features they're licensed for. And because each department handles its own budget, most aren't looking at the full picture.
You zoom out, and suddenly, there's six figures worth of waste—just sitting there. Studies show that up to 50% of SaaS licenses go unused, leading to major waste in company software spend. Energy Purchasing
This one hits close to home for me because I see it all the time. For a lot of businesses, energy is treated like a fixed expense. You pay the bill and move on. Maybe someone renegotiates every few years, but there's rarely a strategy behind it.
The problem? Energy pricing moves constantly. It's a volatile market. Timing matters—a lot. I've seen companies lock in rates at the peak of the market just because 'the contract was up.' No one asked if it was a good time to buy. They just signed.
Over time, those decisions can cost millions. The companies that approach energy like an investment—looking at market cycles, using data to guide timing—come out way ahead. But most aren't doing that.
Businesses that implement strategic energy procurement methods, such as flexible contracts and market timing, can achieve significant cost savings. However, most commercial energy buyers default to fixed-price contracts. Freight And Logistics
In logistics, relationships run deep. A lot of companies stick with the same carriers or brokers for years because it feels stable. But market conditions don't stay still—fuel prices swing, demand shifts, weather happens. And if no one's actively pressure-testing your shipping strategy, you're probably overpaying.
I've watched companies realize they're paying 15% to 20% above market after doing a basic benchmark. Not because anything was broken, just because no one had looked in a while. Routes get outdated, contracts don't get renegotiated and no one wants to fix something that isn't visibly broken. Vendor Relationships
This one's easy to overlook. A lot of companies renew vendor contracts without really thinking about it: 'They've always done a decent job,' or 'We don't have time to go out to bid.' I get it. But over time, that adds up to missed opportunities.
I've seen companies using the same supplier for years without realizing there's a better one out there—with lower prices, better terms or more innovation. Procurement becomes reactive: Just get what we need quickly. But when that becomes the norm, you lose leverage.
Strategic sourcing isn't about cutting costs at all costs—it's about realigning spend with what the business actually needs now.
High-performing mid-market companies regularly revisit their vendor contracts to identify cost-saving opportunities and enhance supplier performance. The Real Issue: Inertia
These blind spots stick around because they're quiet. They don't trigger red flags. No one gets fired over slightly high shipping rates or a dusty software license. And because they don't scream, they get ignored.
But in this market, that kind of complacency is expensive. Margins are tight. Expectations are rising. And the companies that stay flat-footed get outpaced—quickly. So What Can You Do About It?
Start by asking the uncomfortable questions:
• What parts of our spend haven't been reviewed in over a year?
• Where are we defaulting to 'the way it's always been'?
• Which tools are sitting unused or solving problems someone else has already solved?
• Do we have the right internal firepower to evaluate fast-moving markets like freight, energy or tech?
Then, build a rhythm. Make auditing part of the culture, not a once-a-year cleanup. Create space for operational curiosity. Let people poke at the status quo. Give teams permission to question old contracts or legacy tools.
This isn't glamorous work. It won't end up in a press release. But it's where big wins often come from. Because the companies that win over time? They don't just have great products. They run sharper, leaner and smarter behind the scenes.
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