PwC's insights on intelligent and sustainable cost reduction. Companies must simultaneously tackle both cost reduction and the company's cost management and control in order to realize enduring change to spend.
Companies are justifiably anxious to reduce costs. But the problem with many cost-cutting measures is that they are put into practice without considering their sustainability. Often, cost savings achieved in the short term eventually leak away. The failed cost reduction initiatives wind up damaging corporate infrastructure and culture, leaving companies struggling well after the recession ends.Faced with a protracted period of sluggish demand and tight credit, companies are now asking, “What has to fundamentally change so our cost reduction efforts work today as well as in the future?”