Enterprise Cost Reduction
Companies are permanently assessing the cost structure and looking for cost reduction opportunities. Often, challenging targets are set for company’s departments, locations or business units. Such a fragmented approach often results in sub-optimal and temporary cost savings.
If not approached in a multi-disciplinary way, a cost reduction exercise for packaging material that is based on decreasing the purchase spend, might result in a higher number of quality problems or additional handling costs. Overlooking the consequences of certain actions is regularly the cause for reversing the initiative.
At Deloitte we believe that cost reduction is not a quick fix solution to a short term problem. Firms must take a broader view of the organization to put aside internal barriers and restrictions to ensure reductions made drive performance improvement and generate shareholder value now and in the long run. Rather than simply seeking savings by function, transformational cost reduction requires every element of the business to be reviewed and challenged, leaving no stone unturned.
At Deloitte, our capacity to deliver across the full scope of cost reduction programs - from strategy to execution – sets us apart and we have an established a reputation for designing and implementing cost savings that deliver sustainable result for our clients.