Strategic Cost Elimination

Realize Optimal Expenditure Aligned with Corporate Goals

Most businesses allocate between 70% – 80% of total costs to their suppliers. Such substantial spending often becomes a routine affair, potentially diverging from corporate goals. Our Cost Elimination services deploy a zero-base budgeting (ZBB) methodology to scrutinize ongoing expenditure meticulously, challenge budgets, and excise wasteful spending to align costs meticulously with business objectives.

Master Commercial Culture & Expenditure

While procurement functions proficiently manage key suppliers and contracts, control often diminishes in the mid-tail, rendering influence over significant, high-volume spends challenging. Both traditional and emerging technology solutions, including marketplaces and spot buys, can enhance organizational purchasing but may overlook essential evaluations such as, "are expenditures strategically oriented and cost-effective?" Our Cost Elimination initiative delves deep into the commercial culture, collaborating intensively with budget holders and finance to eradicate unnecessary spends.

 We offer:       

  • Strategic Cost Stop Methodology: A structured model to implement cost halts effectively.

  • Constructive Cost Challenges: Leveraging benchmarks and expertise to propose feasible alternatives.

  • Legacy Process Improvements: Infusing market knowledge to enhance traditional processes.

Our Approach - Fostering Positive Transformation

Cost Elimination is predominantly implemented when there’s an imperative to realize immediate savings and recalibrate commercial culture. It necessitates executive-level involvement and a collaborative commitment from finance and budget holders. Expenditures are assessed against pivotal business drivers including growth, brand reputation, customer service, compliance, and operational continuity.

 We facilitate:

  • Focused Assessments: Engaging leadership, finance, and budget holders to identify focus areas.

  • Establishment of Cost Elimination Governance: Initial facilitation of the process and governance group.

  • Supplier Cost Challenges: Providing the capacity and capability to confront suppliers on costs when necessary.

 Our comprehensive approachenablesyour organization to attain a refined commercial culture, ensuring every dollar spent is a strategic investment towards organizational objectives.