- Have your input costs been rising over the past few years?
- Do you have new employees in your organization who cannot remember the times in the cycle where cost control was a way of life?
- Do many of your employees no longer have cost management skills and habits?
- Are you struggling to get transparency on the drivers of your rapidly rising costs?
Many of our clients are facing these worrying signs. Some are already starting to feel the impact of these symptoms on their costs and profitability. Others have lived through economic and commodity cycles before and know that if they don’t act soon, habits and higher costs will have hardened and will be very difficult to remove at a later date.
This article outlines the four drivers of costs and the different methodologies for tackling them:
- Rapid change in behaviours for reducing ‘unnecessary’ spend
- Root cause analysis for spend that is currently seen as ‘necessary’
- Strategic sourcing
- Hard wiring in the changes to ensure that savings are not eroded over time
If you would like an electronic or paper copy of any of our newsletters please contact Catherine Bristow at catherine.bristow@pipint.com
