Achieving sustainable cost reduction

Today's companies struggle with cost-cutting pressures as they face business inefficiencies, ineffective supply chains, rising energy costs, and a soft economy. Traditional approaches often fail because they lack the critical factors necessary to make cost reductions sustainable.

The cost reduction component focuses on quickly delivering tangible saving opportunities that are owned by management. The cost management and control component focuses on improving weaknesses in the way costs are managed to drive continuous improvement and sustainability. The results often include clarity of cost drivers, operating and discretionary cost savings, financial discipline and cultural awareness, immediate cost control stabilization, and waste elimination.

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Achieving sustainable cost reduction maturity map Download Achieving sustainable cost reduction maturity map (17kb)
Sustainable cost reduction is a journey, rather than a traditional one-off program. This journey is comprised of a series of activities, primarily split into two stages: Stabilization and Transformation. PwC helps our clients navigate this journey and realize the sustainable benefits of cost reduction.