Strategic cost reduction realigns and optimizes your organization’s cost structure and operating assets with the market so that you can pursue growth initiatives. When business objectives call for 5% to 20% cost reduction, executive actions need to adopt strategic cost reduction and get beyond operational improvements.
Operational cost improvements only get you so far, whether leaner operations, stricter cost controls, tighter supplier rates, and gradual staff reductions. At best, these actions will cut 2% to 4% of total costs.
We employ strategic cost reduction and assist in cutting high costs with structural changes that sustain cost savings and margin improvements in the long term without hurting the business.