Sensitivity Analysis to Aid Shelter Management Decisions: How Does Altering Expenditure Affect Operational Viability?

Publication Type:
 Journal Article
Year of Publication:
 2015
Authors:
 Nicole Olynk Widmar, Emily Lord, Annette Litster
Publication/Journal:
 Journal of Applied Animal Welfare Science
Publisher:
 Routledge
Keywords:
 , ,
ISBN:
 1088-8705
Abstract:

Streamlining purchasing in nonhuman animal shelters can provide multiple financial benefits. Streamlining shelter inputs and thus reducing shelter costs can include trading paid labor and management for fewer, more involved volunteers or purchasing large quantities of medical supplies from fewer vendors to take advantage of bulk-purchasing discounts. Beyond direct savings, time and energy spent on purchasing and inventory control can be reduced through careful management. Although cost-cutting measures may seem attractive, shelter managers are cautioned to consider the potential unintended consequences of short-term cost reduction measures that could limit revenues or increase costs in the future. This analysis illustrates an example of the impact of cost reductions in specific expense categories and the impact on shelter net revenue, as well as the share of expenses across categories. An in-depth discussion of labor and purchasing cost-reducing strategies in the real world of animal shelter management is provided.

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