Enterprise cost reduction
An integrated approach
Companies are permanently assessing the cost structure and looking for cost reduction opportunities. Often, challenging targets are set for company’s departments, locations or business units. Such a fragmented approach often results in sub-optimal and temporary cost savings.
If not approached in a multi-disciplinary way, a cost reduction exercise for packaging material that is based on decreasing the purchase spend, might result in a higher number of quality problems or additional handling costs. Overlooking the consequences of certain actions is regularly the cause for reversing the initiative.
Deloitte is convinced cost-cutting can be embedded in the corporate structure and culture so that it does not cause a major disruption every time another programme is introduced – but companies need to think of cost-cutting as a core capability and entrench it into everyday management attitudes. Therefore, Deloitte has developed an Enterprise Cost Reduction methodology to help companies control their cost reduction programmes.
Enterprise cost reduction incorporates a scalable and sustainable approach to creating value through transformational cost reduction opportunities. It is a strategic imperative that requires both vision and operational discipline, with a value-oriented mindset and a bias for execution.
Material on this website is © 2013 Deloitte Global Services Limited, or a member firm of Deloitte Touche Tohmatsu Limited, or one of their affiliates. See Legal for copyright and other legal information.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.