Total Cost Optimization
There is a clear line between cost cutting and cost optimization. Cost cutting is about reducing costs by cutting expenses, whereas, cost optimization is about reducing costs by improving processes, efficiencies and investing in more profitable areas. We focus on cost optimization.
A structured approach is important to cost management, which means thinking beyond short-term cost savings. By focusing on some of the key dimensions of the business and by identifying the core cost drivers, businesses can take steps to effectively manage costs in a sustainable manner.
An effective cost optimization program is based on deep analysis and fact-finding techniques such as cost driver analysis or spends analysis to assist management in understanding better cost structures in order to identify, quantify and prioritize savings opportunities. With this factual analysis, management can implement a program of change to drive out costs through strategic changes to business models and implement efficiency initiatives throughout the business.
Identify - Identify the inefficiencies and cost overruns;
Quantify - Calculate the cost variances and process losses;
Rectify - Suggest ways on improvement;
- Preparation of Management Accounts
- Cost Accounting System Development
- Cost Optimization Advisory
- Business Process Optimization
- Product Costing, Activity Costing, Process Costing