Cost Reduction Analysis Makes Your Business More Profitable
CEOs and CFOs have to strike a delicate balance between the needs of their suppliers and customers, and the
demands of their shareholders and investors. Cost reduction audit services can help them maintain this balance
and increase profitability in the long-term.
Cost reduction is a positive and ongoing activity aimed at reducing a brand’s expenditure. By partnering with a
company that offers cost reduction consulting services, your brand can develop a winning strategy that reduces
costs in your procurement, bidding, and production processes.
It is wise to establish a partnership with a company skilled in cost reduction analysis due to the fact that cost
reduction has to be maintained on a long-term basis to show any real improvements to your margins and,
ultimately, your bottom line.
Areas of Cost Reduction
The areas that consultants devote their expertise to vary according to your industry, goals, and processes. Some
of the areas that consultants will focus on include budgetary control, material and labor control, overhead control
and the standardization of your products, tools and processes.
Standardization is necessary to ensure that the remedies the consultants offer become a standard way of doing
business for the brand. These remedies will never interfere with the level of quality the brand offers in its
products and services. Instead, cost reduction consulting services will focus on eliminating unnecessary waste on
an ongoing, real-time basis, as it occurs.
The partnering company that performs your cost reduction analysis will be flexible. They understand that there
are only certain areas they can implement cost control measures and that these are specific to your brand or
Overall Methods of Cost Reduction
The cost reduction strategies employed by consultants may take one of two avenues. Their focus will depend on
the acknowledged inefficiencies of your brand’s production and expenditure processes and the needs of the
- The first method is to reduce the cost of production per unit whilst maintaining the same production volume.
- The second method involves increasing the production volume while maintaining the same cost per unit.
By taking one of these two approaches, the consultants will be able to focus on the underlying aspects that need
improvement to reach either of these goals.
Using Digital Technology in Cost Reduction
These days, many companies have taken a data-driven approach to their procurement and production processes.
This approach streamlines the cost reduction process for the consultants. By logging on to your brand’s systems,
they can perform their analysis remotely and produce reports using the raw data provided.
These reports will furnish CEOs and CFOs with graphic evidence of where the cost reduction practices need to be
implemented. By processing this data to provide models of expected results, upper management will have a firm
idea of what adopting these practices and strategies can mean for their bottom line in the future.
Pantavanij Leads the Way in Cost Reduction
Pantavanij is a Thailand-based company offering a range of cost reduction services. We are also experts at
developing digital tools that can effectively reduce a brand’s costs through careful management and analysis.
With a professional team of more than 200 employees experienced in procurement and production practices, we
can implement a cost reduction strategy that will improve your margins and streamline your operations and
Our dedicated Cost Reduction and Advanced Analytics Team, CORAL, offers spending analysis and process
improvement remedies that put your brand on the path to reducing costs.
With the increasing competition and rapid growth of business due to today’s digital economy, cost reduction is
becoming a crucial focus for many brands. To learn more about Pantavanij’s digital products and cost
management consulting services,
contact us today.