Cost Reduction

Dienst

Cost Reduction

Deloitte’s answer to developing significant, sustainable cost savings

Cost efficiency is important both in good times and bad. When business is slow, enterprise cost management can help increase your savings and help generate the cash and liquidity you need to survive. When business is booming, it can provide a scalable cost base that can help increase profitability and can allow you to grow aggressively through hiring new talent, acquiring new businesses and pursuing new market opportunities.

What we offer

Cost reduction is a top priority for businesses of all sizes, across all sectors, but most companies don’t have the experience, capability or capacity to materially improve cost and cash flow. Our cost reduction experts can help you to identify what the best approach will be for your company based on your specific circumstances, ambitions and sector.

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:

  • Short term strategies – among other things, improvements in short-term cash flow may derive from: staff reductions, benefit plan restructuring, tax refunds, real estate portfolio financing and inventory reductions
  • Long term strategies – long term savings are driven by: organizational restructuring, supply chain improvements, tax structure arbitrage, implementation of shared services and process/technology integrations

We offer deep, sustainable, enterprise-wide cost savings, which quickly increase cash-flow while providing long-term cost reductions and operating efficiencies. Furthermore transformational cost reduction is offered, which rather than simply seeking savings by function, requires every element of the business to be reviewed and challenged, leaving no stone unturned.


Why it works

At Deloitte, our capacity to deliver across the full scope of cost reduction programs - from strategy to execution – sets us apart and we have established a reputation for designing and implementing cost savings that deliver sustainable result for our clients:

  • Fast, measurable ROI benefits appear within 90-120 days
  • Sustainable increased efficiencies continue to generate long-term savings
  • Comprehensive enterprise-wide solutions yield deeper cost reductions
  • Integrated industry veterans examine finance, operations, human resources and technology issues to maximize overall savings
     

How we work with you

Our comprehensive and time-tested approach is designed to help you in your efforts to design a cost structure that fits your business strategy and goals. This approach realizes quick and sustainable results is designed around six guiding principles:

 

  1. Art of the possible - We recommend our clients start here. We baseline their cost performance, determine medium term demand for products and services and identify opportunities. Practical, clear business cases are built and an integrated picture created to help decide what will be implemented.
  2. Inflight Assessment – You may already be underway with a cost reduction program. We can perform a health check looking at approach, coverage, gaps, implementation plans, resourcing, capability and likely outcomes. A lot of clients struggle to realize the benefits from their cost reduction programs. We can continue to advice or step in to mitigate issues and improve speed and overall benefits.
  3. Rapid Cost Reduction - Where a company needs to generate benefits quickly (within 3 to 6 months) without major investment or restructuring we offer targeted opportunities around procurement (renegotiation and spend consolidation), manufacturing (lean assessment and planning) logistics (lane/mode optimization and overflow elimination) and commercial (pricing models, incentives, promotion efficiency and unprofitable customer/sku rationalization)
  4. Functional Cost Reduction - We are positioned to support you at a functional or business unit level. We support sales, marketing, procurement, finance, HR, manufacturing, logistics and the wider organization for financial, physical and digital products.
    Funding Growth and Investment - Companies are keen to fund growth and strategic investments from savings elsewhere in their business. Allowing benefits to be reinvested can really incentivize to find and implement savings. Innovation, product development, functional and wide ranging improvements allow clients to achieve reinvestment hurdles and better balance their working capital and investments.
  5. End to End Delivery - Following an ‘art of the possible’ assessment we offer end to end delivery support across the program and across the enterprise. Our experts can stay with you throughout the implementation can take responsibility for delivery if necessary.

Our experience in delivering value to our clients

We have extensive experience in cost reduction programs, both national and international, and a strong track record in various industries for large multinationals to mid-size organizations. An examples of an impact case studies that materialized in significant annual cost savings: a Maritime Services Industry leader was faced with unpredictable market conditions and decreasing margins. A full cost review (including fleet and equipment rationalization assessment, workforce optimization of support pools and full blown overhead costs assessment) was conducted and results implemented. 
 

Know more?

Would you like to know more about cost reduction? Please contact Willem Christiaan van Manen via +31 (0)88 288 3118 or Joëlle van den Brand via +31 (0)88 288 5227.

Contact

Willem Christiaan van Manen

Willem Christiaan van Manen

Director

As a director at Deloitte Consulting I lead the NL Business Model Transformation practice. I have extensive experience with strategy and performance improvement consulting projects in the private sect... Meer

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