Cost Reduction -retired

Cost Reduction

While making growth decisions, stakeholders need a careful evaluation of the cost associated with it. Cost related decisions have profound impact on the long-term profit margins, often taking years to recoup if cost go out of control. While capital expense stay predictable and fixed, economic cycle directly impact company’s revenue. For smaller businesses when economy is slow or if inflation is growing faster than current growth rate, revenue may note cover the cost incurred.

Our consultants come with a strong understanding of strategies and options available to protect your company against future losses while economy slows down. We take-out costs and re-deploy for growth in a lock-step fashion starting with low hanging cost take-out initiative immediately followed by growth related execution. Consultants will help maintain similar working capital structure with a high potential for short- and mid-term growth trajectory.

TBL maintains a rich database of cost drivers in various industries and has developed best practices of cost behaviors and swings. We come in with an understanding activities in an enterprise that affect cost levels. We develop influence maps to demonstrate relationship between activity and costs. Often in less than seven (7) days we develop cost functions and tell you the biggest impact of how cost can be contained. This tool-kit has allowed us to identify cost leaks and patch them efficiently.

  • Evaluate new manufacturing methods and service practices
  • Make short-run marketing decisions
  • Make short-run production decisions
  • Plan/budget future activities
  • Make long-term decisions across the company.

 Value Chain Strategy of Business Functions to reduce cost

cost drivers and process influencing cost variance that helps small business reduce cost:

  • Make or buy decisions
  • Evaluate decisions of idle assets, facilities, intangibles
  • Joint-ventures
  • Product portfolio
  • Obsolete inventory
  • Study impact to income statement

In mid-size Business Transformation projects we have reduced cost in a variety of scenarios:

  • Product cost impact due to change economic variables
  • Job cost impact from additions to existing portfolio
  • Process costing due to increase in compliance, packaging requirements
  • Operational costing across the company
  • Marketing budget alignment