Strategic Cost Reduction

We frequently work for companies who are struggling to improve their PBIT/EBIT and overall profit performance. Whilst improving and increasing sales is obviously a key target, strategic cost reduction can significantly improve your bottom line, indeed, in some instances we have directly improve PBIT/EBIT by as much as 19%. See our case studies.

The terms “procurement” and “purchasing” are frequently used interchangeably. In reality, they mean very different things. If we were to approach a project purely from a purchasing perspective, our main focus would almost certainly be price driven; to buy product or services more cheaply. With a procurement approach, we will not only consider price, but we take a global view at the business process being used.  It may be, for example, that taking wider business objectives into account, the best improvement comes from a step change: perhaps closing production in the UK in favour of relocating in China or Eastern Europe, or partnering with an existing component supplier (in all probability overseas) and eliminating a bulk of production costs.

CASE STUDIES

Fact Sheet 1