Sustainable cost reduction
In today’s climate of economic turmoil, many companies are struggling with low demand, shrinking margins, rapidly changing business models, and nonproductive acquisition strategies. 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.
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.
Visit our Sustainable Cost Reduction site to learn how we can assist you.