Achieving sustainable cost efficiency and effectiveness requires a strategic, enterprise-wide approach that yields both immediate and long-term savings.
Balancing the requirements for short-term profitability with the long-term imperative for growth requires organisations to alter their operating structure. Deloitte has industry veterans that examine finance, operations, human resource and technology issues to maximise overall savings.
We have identified clear steps to achieve the organisation’s aspirations:
- Step 1: Renovate, where organisations maximise available cash flow with strategies like benefit plan restructuring, tax refunds, real estate portfolio financing, inventory reductions and other quick-win improvements. This establishes a baseline for optimisation to be self-funding.
- Step 2: Optimise, where a sustainable baseline is established as the basis for the next growth phase of the economy. This is achieved through, among other things, supply chain, support function and maintenance optimisation, capital efficiency programmes, and process standardisation and automation.
- Step 3: Grow, where exponential growth is achieved through a sound operating platform, of which to build an agile and focused organisational structure.
- Measurable return on investment benefits appear within 90–120 days.
- Return on initial investment fees is typically 10 times the investment.
- Sustainable increased efficiencies continue to generate long-term savings.
- Comprehensive enterprise-wide solutions yield deeper cost reductions.