Cost Management

The most profitable organizations deliver the most consistent returns and also have this one thing in common: a continuous and strategic commitment to cost management. We will work with your company to review your cost base, identify opportunities, and embed an ongoing process that will continue to find opportunities under the total cost of ownership methodology.

Strategic cost management is a top-down commitment that every level of the organization must be a part of. Is this is implemented effectively, it can be a driver of competitive advantage. Cost Management is the process by which companies control, forecast, and plan the costs of doing business. When properly implemented, a cost management strategy will translate into reduced production costs for products and services, as well as an increase in value delivered to the customer, In turn, this will enhance your company’s bottom line.

For your management team to be effective in reducing costs and increasing revenue, a comprehensive cost management approach must be in place:  anticipated costs are identified and measured, expenses are approved before any purchasing occurs; incurred costs are recorded and tracked to ensure that costs are not only controlled but are kept in line with initial expectations.  We can assist your company in creating this organized and tailored process with your strategy and your needs in mind.

Our approach focuses on the two areas with the highest bottom-line impact: supply chain optimization and organizational improvement.

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supply chain optimization

What is a Supply Chain? Supply Chain is the network of all the individuals, organizations, resources, activities, and technologies involved in the creation and sale of a product or service. It includes the delivery of source materials from the supplier to the manufacturer to its final delivery to the end-user.

Supply chain optimization is the process of connecting decisions and actions across an end-to-end supply chain to drive “Strategic Value Maximization” for all stakeholders. It requires aligning strategies, effectively managing operations, and maintaining reciprocal flows of information among stakeholders to consistently enhance results.

To effectively consolidate the supply chain, several cross-functional processes and competencies need to be optimized. As a result, the organization will shift from a silo communication style to a more collaborative pipeline style that captures cost advantages, create efficiencies and synergies, discovers new or untapped capabilities, transforms operations, catapults growth and accelerate results. The benefits of our “Strategic Value Maximization” methodology include the ability to read and predict the market faster, accelerating the time to market products, decreasing order cycle times, higher on-time and in full rates, increasing customer service and customer satisfaction, and overall improving the alignment between supply chain and demand indicators.

So, Why is “Strategic Value Maximization” so important? Why now? Now more than ever, companies need to be nimble, agile, resilient, customer-centric, cost-conscious, and strategic. The conventional way of doing business will drive your company out of business. It simply no longer works. Embracing change is no longer optional. It is the “ONLY” option.

“Business as usual” will drive you out of business, because customer behavior has changed and evolved. SKU Proliferation and The Amazon Effect are real threats to any company. There is no secret that convenience has a price, but when there is an increase in competition it results in the form of reduced margins. Furthermore, customers, aside from convenience, want the lowest price and they want it now. All of those attributes are achievable, but without “Strategic Value Maximization”, it will require an ever-increasing amount of capital for product development, marketing, and inventory.

Together, we can optimize the various areas of the supply chain, capture cost advantages, drive growth and develop efficiencies.

organizational improvement

We provide three essential services that can significantly impact costs associated with your workforce and how your organization is structured in the areas of Procurement, Logistics, and Operations. An inefficient reporting structure can rapidly cripple your company and impact your bottom line negatively. In an increasingly competitive and volatile global business environment, it is more important than ever to achieve and sustain a productive company culture. Leadership needs to develop the capabilities to align limited resources, break down departmental silos, and establish a culture in which every team member understands exactly how their activities contribute to the organization’s broader strategic goals.

Our Organizational Improvement process is effective because everyone at all levels of the organization is involved, engaged, and committed. The result is a compelling, logical, and results-oriented master plan that the senior team is committed to, and it is one that people throughout the organization will understand, support, and execute. With our help, you can drive an immediate impact and accelerate sustainable, operational change. We also reinforce specific skills needed to embed cultural change that will further propel your organization forward.

We achieve all of this by using data analytics, industry benchmark data, best practices, and strategic levers to implement the required changes.

organizational alignment and design

A company’s structure determines its ability to execute strategy and adapt rapidly to change, so any re-organization you do must to be done right or else the results can be disastrous. Our team of specialists has extensive experience with fundamental, organizational, restructuring, and overhead cost reduction.

By assessing and benchmarking your structure and activities, we will complete in-depth analysis. We will look for ways to increase productivity, improve communication, and streamline workflows custom to your particular business strategy. By addressing the underlying demand drivers for selling general and administrative expenses, we enable rapid cost reductions without disrupting your business.

Your operating business objectives dictate your company’s strategic decisions going forward in the context of market challenges and specific levels of authority and priorities. It also dictates how well your company provides empowering guidance and training to managers. It is important to remember that managers make critical decisions that effect the company and the customers. Organization Alignment and Design ensures that the implementation of any organizational change moves beyond ideas. We will help you take action that provides a visible and long-lasting benefit to your company.

change management

The design of an organization is not just about boxes and connecting lines on an organizational chart. It is more about efficiency and having the right people in the right jobs, and making sure those positions are reporting on essential functions within the right organizational framework. When it is apparent that the current structure is no longer efficient or is unable to adapt to a changing market or technologies as quickly as needed, it often requires significant change as well as a new way of doing things and new ideas.

Our process engages your entire team through assessments, alignment exercises, and training. Then it guides you through the application, evaluation, and follow-up to identify problem areas and drive specific improvements.

Given technology changes, some roles may become redundant while new roles form. Our experience dictates that it is best to retain and retrain as many people as possible, elevating not only the company but also providing career development options to your employees. Technology is not the enemy but instead embraced as it allows the company to become more efficient and be better positioned to stand and beat the competition.

For a successful transformation, building support, creating and communicating a vision, removing obstacles, obtaining and building upon short-term wins, and integrating a culture of commitment and performance are all critical.

span of control and layer improvement

Because of rapid growth, multiple acquired organizations remain unchanged and with lots of redundancy, negatively impacting revenues, profits, and shareholder returns.

As we are engaged, you can take advantage of the momentum to assess the organizational structure, staff alignment, and Span of Control across the layers of their organization. We have the experience in evaluating, planning, and implementing an effective Span of Control and Layer Improvement initiative. As a result, the following challenges are often found: too many managers having narrow spans of control; too many layers of management between the CEO and front line worker; having staff too far removed from the customer; business units each having their own set of staff functions; poor staff productivity when compared to external benchmarking data; and staff performing duties of no added value.

Our structured approach will be tailored specifically to your needs to reduce overhead costs, speed up decision making, increase flexibility, and improve overall efficiency.

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