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There are different technics for cost reduction follow by different departments :
In operation : Value engineering: It will help you to configure your product by removing unnecessary features, to reduce cost and get better profit margin.
In Sales : Product Mix – Use suitable product mix for increase profit; don’t play with quality and cost.
In Logistics : Optimal model of transportation will help to reduce the transportation cost without touching on quality of product and cost.
In general :
QMS : An advanced quality management system will help you to reduce your cost by preventing / eliminating re-works or product call back. Initial cost of QMS will be there, but it will help you to reduce cost in log terms in many ways.
Training / Coaching : It will develop the skills of employee, long terms it is fruitful to the organization. It will help to improve productivity, decision making and finally leads to cost reduction.
ICT : Information & Communication Technology, ERPs are caused to cost reduction of most of the corporate giants in a great extent.
Above listed are few examples of cost reduction for positive results and it is advisable. This will help to increase the efficiency and ultimately help to reduce the cost of operation.
Thanks for invitation.
1. Establish a cost-cutting goal.
2. Set a mark that you must meet.
3. Reevaluate your suppliers.
4. Maximize your employee's task efficiency.
5. Evaluate production methods & tasks.
6. Eliminate defects in production process.
7. Minimize & Eliminate waste.
By increasing efficiency... there can be multiple options depending upon the situation. e.g. if you are operating a site on grid or gen set, it can be designed to operate on solar. A little CAPEX needed but huge OPEX reduction guaranteed, thus TCO is too good.
Thanks
I strongly agree with the answer which given by Mr. Najeeb
Regards
Looking at the value chain and optimizing key activities, inbound or outbound logistic, production and any primary activity.
Resource allocation, Right sizing of department and biased free evaluation process.
thanks
i fully agree with all experts
and i think also to decrease the cost
Thanks for invitation,
1- Improving effectiveness and efficiency in the organization as a whole.
2- Activating the role of research and development (R &D), in the organization.
3- More control for wast in all types of resources.