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Back to basics: Cost restructuring for the future

Back to basics

  • This report looks at a new look at cost reduction imperative for survival; a paper industry perspective
  • The strategies for cost reduction are grouped into two main groups: Cost focus strategies and Growth and Sustainability strategies
  • The 3 main cost-reduction strategies under “Cost Focus” include the following:
    • ‘Lean-out ' operations: the main activities engendered under these strategies are joint ventures, compression of cash conversion cycles and leveraging scale to improve efficiency among others
    • Shifting fixed costs to variable costs
    • Simplified business models
  • The strategies that make-up Growth and Sustainability
    • Grow smart which includes revised pricing strategies, understanding customer behaviour and innovation among others
    • Proactively manage talent
    • Bolster planning disciplines

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