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Enterprise Cost Reduction
A template for crafting a Cost Reduction Programme
Cost reduction programmes are commonly carried out in silos, without much more coordination than each having some portion of an overall rand target to meet. And then the task becomes so complicated and fraught with sensitivities that little happens in the way of sustainable efficiencies. But it needn’t be so. If you go to the trouble of mobilising for cost reduction, you might as well make it stick, and create some competitive advantage along the way.
A refresher of the basic structure for crafting an enterprise cost reduction programme involves:
- Re-examining the company strategy
- Establishing the cost base
- Comparing performance with best practices
- Setting cost reduction targets
- Identifying potential initiatives
Click here to see the full cost reduction journey