As the extended nature of the lockdown continues, pressure is building on businesses to find meaningful cost reduction to enable them to re-model the business and compete effectively.
Our experience in cost reduction and conversations with businesses highlight that a number of barriers are encountered that can inhibit the effectiveness of a cost reduction programme, as follows:
- Lack of transparency over costs and procurement and insights to identify opportunities
- Lack of effective prioritisation of cost reduction opportunities
- Lack of market insights and trading experience
- Inability to overcome ‘drag’ or resistance to cost reduction across the organisation
- Concern that cost reduction with damage the business culture and growth
- Excessive focus on supply chain issues rather than broader working capital or treasury optimisation
- Programmes that merely seek to meet minimum employer requirements and lack leadership and communication
How we can help: If any of the above are familiar or a concern and you want to accelerate your cost reduction initiatives, get in touch to hear how we can help you with forensic insights into your cost base with an approach and support for cost reduction on a strategic and enterprise-wide level. Within 14 days we can provide you with analysis that triangulates finance, management and supplier data to plan the most effective cost reduction plan for your business. We can even do it offsite. Get in touch with us and start today.