Identifying Goals
Significant improvement occurs through a study of the existing system, consolidating and levering volume whenever possible. Eliminating bottlenecks, streamlining processes, and implementing an efficient methodology has the potential of providing significant savings overall. Some of this can be derived though working with the vendors, other pieces may take the support of an automated system to achieve. It is the sum of the pieces that add real value.
Team Building
Cost reduction is not merely a one-time activity that is imposed on the enterprise by an external organization. It represents a change in the manner of business and many times culture in the viewpoint and decision matrix involved with each expenditure. An important part of the process success is the employee buy-in -- a feeling of ownership -- to the cost reduction strategy. Employee team building and skill transfer during the cost reduction process ensures the savings will continue after task completion.
Continuous Improvement
The business environment is constantly adapting and changing as new methods and new products become available, making it possible to perform continuous improvement throughout the organization. The resulting savings in all areas will ensure the cost reductions remain in place and continue into the future.