Cost Reduction

Carrier Bill and Service Auditing

Our auditing services monitor all carrier charges to ensure billing accuracy. We conduct a thorough audit of every charge on each shipping invoice in order to recover refunds for service failures, misapplied charges, duplicate charges, and rate inaccuracies.

Supply Chain Cost Reduction

costreductionsourcesOften times when businesses seek to reduce costs they only attack one source of cost reductions and more often than not this leads to heavy negotiations with suppliers.  What most businesses don’t realize is that they are just shifting costs down the supply chain instead of creating a more efficient and effective supply chain.  Sources of cost reductions for businesses are present internally and externally.  A methodical approach to cost reduction will help businesses find cost reductions in more than just one area. Below is a list of a few areas to consider when attempting to reduce costs.

External Sources

  • Supplier consolidation and optimization
  • Component consolidation and optimization
  • Evaluating international opportunities
  • Sending Request for Quotations (RFQ)
  • Supplier coordination

Internal Sources

  • Process improvement
  • Waste reduction
  • Utilization Management
  • Production optimization

The Trade-Off

costreductionvsgrowthBusiness managers are often asked to do more with less. With constant pressure to reduce costs while seeking growth opportunities can, cost reduction can be tricky and often overwhelming.  Many decisions need to be made including, reducing head count, eliminating non core functions, reinvestment in critical assets and choosing the appropriate supplier for your purchasing needs.

Its wise to seek professional advise on cost reduction because it is a balancing act.  Seek someone that is knowledgeable about cost reduction analytics and qualitative assessments to receive a top to bottom analysis of opportunities to improve.

Cost Reduction Analytics

  • Supplier cost breakdown analysis
  • Function analysis and value analysis
  • Cost driver analysis
  • Product benchmarking
  • Competitor benchmarking
  • Utilization analysis

Excellent operations has become increasingly important in today’s Economy
and supply chain metrics and analytics can help achieve better short term and long term value for your cost reduction initiatives.

For more information please contact our