The global economic slowdown has affected different geographies as well as different sectors and companies are confronting new challenges. While many companies are heading towards cost reduction during this process, they can stop the investments of new projects and human resources or delay them for an unforeseeable future. However, determining and analyzing the long-term effects and the possible risks of these precautions correctly plays a great role in preventing bigger financial challenges in future.
Companies which move properly and take smart precautions during this process can leave process stronger than before and utilize the major opportunities created. Other than focusing on basic and profitable assets like human resources and product range, smart precautions include critical processes that ensures the future of the company like revising the current activity model, determining the effects of company goals on these activities and acting on them quickly and improving customer experience.
Maintaining the same position during the process may require changes both in the management of the company and the way it operates. In times like these where capital is scarce, in order to maintain their activities without interruption, companies should consider inspecting their financial structures.
The goal of cost reduction is to direct a company’s most valuable resources like time, money, and labor to activities that will generate the biggest gains and use them efficiently by following a holistic approach that takes smart methods and all aspects of the company into consideration. One of the most important aspects of these projects is to stop relying on the short time solutions that the reduction efforts and precautions bring, but focusing on long-term planning and maintaining these changes without creating bigger costs in the future.
Quattro’s Approach to Cost Reduction Methods
- Analyzing current processes and investigating responsibilities on an employee basis
- Evaluating the effectivity of current functions
- Determining the effects of growth and strategic goals on these activities and the resources that will be needed
- Calculating the amount of workload needed
- Determining potential fields like supply optimization, regulating the conglomerate’s role, portfolio optimization and cooperation with other companies, by categorizing and analyzing company expenditures and performing sector comparison studies.
- Suggesting viable ways to implement the savings using KPI’s
- Supervising the systematic implementation of the suggestions and the savings/cost reductions
- A holistic approach forms the perspectives of strategy, process, organization, and technology
- Expertise in conglomerate structures