Effective Cost-Reduction Strategies

Description

The note discusses key issues for effective cost management and considers actions to be taken to reduce costs in areas such as travel expenses, unpaid bills, purchases and logistics, rentals, professional services, etc. It stresses that cost reduction for its own sake is not a good idea, and that managers must think carefully about which costs add value and which do not. Another point made is that costs can be reduced not only by negotiating with suppliers but also by changing the way things are done, systematizing processes and changing habits.

Keywords

Business Administration Control systems Cost-benefit Analysis Costing Systems Costs strategy implementation