15 Jul What Is Cost Reduction?
Cost reduction is to lower your existing cost with regards to a spend category with or without engaging into a new contract or agreement. You can accomplish this task with analyzing your current expenditure accurately over a fixed period of time usually 12 months and then creating a specific and need based set of criteria and requirements. This specific set of requirements will include your existing and future needs as well as a detailed scope of work specially tailored to your spend patterns and future growth. The process identifies best business practices already in place which may or may not be implemented on a regular basis. A good cost reduction process optimizes procedures to maximize profitability.