Selling, General & Administration (SG&A) Cost Reduction Focus
A Systematic Approach: The Opportunity Assessment and the Business Case for Improvements
No enterprise cost reduction or enterprise transformation effort is complete without some consideration of selling, general, and administrative (SG&A) expenses. Because SG&A touches every part of the enterprise, finding a way to lower SG&A costs goes a long way toward cutting overall spend.
Top performers also focus across all SG&A (selling, general and administration) functions and business units, and not just functions like HR and finance, because making improvements ad hoc or in silos doesn’t make a broad enough impact. The improvement levers that match the business strategy are across a set of SG&A functions, often including shared services centers, process reengineering, strategic sourcing, controllable expense reductions, ERP implementations, and quality and process management.
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