What are the strategies of reducing the cost ?

Cost reduction is the process used by companies to reduce their costs and increase their profits. Depending on a company’s services or Product, the strategies can vary. Every decision in the product development process affects cost. Three key factors to a successful cost reduction strategy The design and implementation of a comprehensive cost reduction strategy should focus on three key deliverables:1. Reducing overall operating costs2. Improving the management of utility contracts and relationships3. Reducing the waste generally across all departments within a business.

Increased rates of capacity utilization for the actual performance of the basic centers, and add other productive energies through the addition of new production lines.

Reduce waste Minimizing expenses inappropriate Purchases eligible administration and scientific Full knowledge of the market and the prices of materials and choose the most appropriate quality and price

Increasing profits through reduce costs and cost cutting must be based on the concept of an organized, planned program.

1. Paying The Right Price

2. Business Process Improvement

3. Focus on Profitable Products and Services

4. Quality Improvement

5. Analyze Your Expenses

6. Break-even

7. Locating Reducible Expenses

8. Taking cost cutting Action

9. Supply Chain Management