Cost
optimisation

Reduce –
Cut costs / Optimise / Prioritise

A clear understanding of the company’s costs structure is critical to determine the manageable cost base and to drive sustained profitability. Scaling a business is different from growing it, and scalability in cost structure is an essential ingredient to business success. We help our clients by

  • Analysing the cost structure, supply chain model and drivers
  • Benchmarking them to industry and competition to determine a scalable cost structure
  • Identifying cost rationalisation initiatives
  • Partnering with the client team in the implementation

Product
Costing

No matter how impressive the demand for the product, if its production method is inefficient, you are unlikely to profit from selling it. One of the ways to increase the profit margin is to lower the product's manufacturing and procurement costs rather than increasing the price of the product. We work with our clients to take a closer look at the cost levers:

  • Capacity utilisation
  • Plant reengineering
  • Strategic sourcing
  • Overhead reduction opportunities
  • Outsourcing versus in-sourcing/in-house capabilities

Transform –
Invest more optimise

Cost reduction is not always the answer for Cost optimisation. Sometimes investing more in certain product lines will have the effect of optimising costs, thereby guiding margins in the desired direction. We partner with our clients to rebalance spend allocations by

  • Focusing on efficiency by investing in automation
  • Increasing investment spends on products carrying larger business potential
  • Investing in new products with significant future market potential.