How to cut cost by process analysis
How to cut cost by process analysis THAT costs will indeed rise is the only certain and unambiguous thing in a volatile, uncertain, complex and ambiguous (VUCA) world. Margins are vanishing, driven down by cutthroat price competition, downward price pressure from clients, upward price pressure from suppliers doing business. As a result, companies have become more preoccupied with rather than planning the next great product to sell. Traditional cost- cutting , however, may lead to false economies. Cutting the wrong costs ( e. g . , value- adding activities) may lead to much higher overall costs or losses elsewhere. Rightsizing may actually end up as wrongsizing. Here are five false economies to avoid: • Downsizing the frontline staff to cut costs may inadvertently cut sales. According to a sur...