The long-term viability of a company’s business plan depends on sustaining its competitive advantage. Competitive advantage is usually achieved through developing new products and services that satisfy and delight customers and through restructuring and improving business processes to improve quality and reduce costs — adding Value.
It’s time to stop thinking of cost cutting in a vacuum. In the new world, the same initiatives can both reduce costs AND raise revenues. The most successful organizations will learn how to work across departments to not just control costs but achieve the ultimate goal: maximizing profitability.
Cost reduction is an objective many organizations include in their annual plans, but few people have been trained to efficiently target and realize cost reduction opportunities in the areas of:
Enhanced procurement philosophies.
Product design simplifications.
Inspection and test redesign.
Improved warranty designs.
Material and paperwork movement reductions.
Improve your understanding of key drivers of profitability and shareholder value.
Recognize the key ways in which global economic fundamentals impact an organization’s cost base.
Become familiar with the important technologies organizations are using to lower their costs while simultaneously raising revenue, often with the same initiatives
Identify crucial areas where costs can be prevented or reduced.
Evaluate the long-term prospect for cost management.