Enterprise Wide Cost Reduction

Competition, government regulation, governance and other pressures have far-reaching affects on companies of all sizes and in all industries. Many organizations have implemented programs such as continuous improvement, six-sigma, and other process improvement activities to confront these challenges and reduce costs.

If you are experiencing these or other similar symptoms, your organization may benefit from enterprise-wide cost reduction:

• High cost as a percentage of revenue relative to competition
• Low levels of working capital
• Disproportionate growth in resources relative to the growth in revenue
• Shrinking gross and net margins
• Large absolute variance in planned to actual cost and return for internal projects

Making the whole organization more efficient.

Enterprise-wide cost reduction efforts take a holistic view of an organization's operations, seeking to streamline people, processes and technology to make the whole organization more efficient. These efforts can be focused across multiple businesses or limited to a single function. While sourcing and procurement is traditionally focused on third-party spend, enterprise-wide efforts focus on payroll expenses as well.

Enterprise-wide cost reduction helps companies improve competitiveness by realigning SG&A, cost of goods sold and other expenses to more efficient levels. In addition, it provides the basis for improving processes, organization structure and enabling technologies.

Experience, best practices and in-depth knowledge.

Successfully applying enterprise-wide cost reduction requires knowledge of best practices, industry cost verticals (both direct and indirect) and deep functional expertise.

The Claro Group is uniquely suited to support your cost-reduction goals. We have assisted many large organizations with company-wide cost reduction efforts across the spectrum of corporate functions – accounting/finance, human resources, information technology, supply chain, marketing, legal, insurance, and others. On average, our clients achieve savings of 13-16 percent.

The combination of our analytical, spend management, functional and project management skills makes The Claro Group the choice to lead your cost reduction effort.

Please contact us for more information about The Claro Group's Sourcing and Procurement Solutions.