SERVICES

Business Cost Reduction Services

Our cost reduction consulting services provide an objective perspective of your current financial state and the root causes driving your cost-cutting requirements. Whether the current economic influences are driving the need to tighten spending or not, implementing thought-out and well-executed cost containment controls and cost reduction strategies will ensure that the right disciplines are in place to give your organization a competitive advantage. 

ADDRESS YOUR CHALLENGES

Strategically transform the way your business operates to ensure financial stability and profitability through cost reduction controls

Many organizations attempt to cut costs without a well thought out financial assessment and strategy. This often leads to cutting staff as a first resort resulting in reduced productivity, impacting your revenue and customer experience. Choosing the right cost reduction strategies for your business requires an objective understanding of your organization’s current state and how it compares with industry benchmarks, economic influences and operational and leadership dynamics. Our business consulting cost reduction and business process improvement services will address your specific challenges and objectives to plan and implement the most appropriate sustainable cost saving strategies in your workplace often without reducing headcount. 

As one of the leading cost reduction consulting companies, we provide organizations with trusted insights derived from broad financial, operations and process improvement consulting experience across most industries. Our practical approach provides the necessary strategic guidance to reduce and manage business costs with confidence. Whether it’s reducing labor costs, manual work, or a plan to improve operational performance to achieve efficiencies, we help organizations identify and prioritize operational cost savings initiatives that will reduce costs sustainably and also free up your resources to focus on tasks that improve productivity and increase margins.

economy chart showing the fields that we can help with cost reduction in

PREPARING FOR ADVERSITY

Businesses that neglect to prepare for economic uncertainty expose themselves to financial and operational risks that could lead to dire consequences. It is often these circumstances that force cost cutting initiatives as ‘reactionary’ measures. 

By adopting a proactive and strategic approach to unplanned events, your business can transform adversity into an opportunity for growth rather than reverting to cost cutting solutions.

When your business is aligned on proactive plans to adapt to changing market conditions, it will respond swiftly and strategically versus radically. Ensure while looking for cost cutting strategies today, that you build a solid plan to address future financial challenges to stand a better chance of weathering storms and thriving in the face of adversity. 

OUR GROWTH-FOCUSED COST SAVING STRATEGIES

Our cost reduction practices are forward-thinking with the intention to lower your operating and overhead costs in the short term and allow your business to achieve sustainable growth in the long term. Many organizations focus on cutting resources as a first step, leading to reduced productivity, customer dissatisfaction and revenue shortfalls. That doesn’t have to be the case. Choosing the right cost-reduction strategies requires a solid understanding of your organization’s unique circumstances and the external influences impacting it. We apply our vast experience across most industries and solid financial consulting expertise to assess your current state and strategic goals which then lead us to create the most appropriate sustainable cost-reduction initiatives, often without reducing headcount.

Organizations have come to expect our personable approach and pragmatic solutions that only come from boutique management consulting companies who understand the real value of client satisfaction. We are large enough to be agile, to respond quickly and to provide consultants with the specific expertise you require, yet small enough to understand the value of tailored solutions that are practical, achievable and strategic in line with your overall business growth objectives. Our cost reduction methodology involves leveraging technology, optimizing processes, reducing waste and building resource capabilities to support a lean and efficient business for the future.

"Many organizations focus on cutting resources as a first step, leading to reduced productivity, customer dissatisfaction and revenue shortfalls. That doesn’t have to be the case."

HOW TO ACHIEVE COST REDUCTIONS

By conducting a risk analysis that flags the severity of potential revenue shortfalls, a company can focus on identifying and building out new opportunities to cushion your business for unexpected losses such as:

  • Losing a major contract
  • Economic downturns, inflation
  • Increased product costs
  • Unexpected events (ie. weather, influences of war)

Create a cost cutting plan before you need it.  Determine the value of each measure, who/what is impacted, and the lead time required to implement it.  

Planning in advance, ensures your key stakeholders have bought into the cost cutting measures so that tough decisions can be made quickly, when a crisis occurs. A sound Plan B, for immediate or short term cost cutting measures, requires  the details necessary to implement them, and the lead time required to effect the savings.

The first step is to look at big-ticket, low-impact items across your organization. Then decide which can be postponed or avoided. Can multiple services be bundled? Do you need so many software licenses or association memberships and are they all being used?  

Get in the habit of cutting unnecessary costs and increase your cashflow to support business growth. In order to sustain these cuts, you’ll require proper financial controls to be in place.  

Build a solid foundation for growth by creating a decision matrix for ‘value-add’ expenditures, and ensure your team conducts a continuous improvement assessment of practices across their financial activities.  

The typical first step companies will take when faced with cash flow issues, is to lay people off. The impact this has on morale, your company reputation and the individuals who directly suffer can be more damaging than the immediate benefit of reducing the bottom line. 

Remember, layoffs do not cut the amount of work that needs to be done – only the people who are available to do it. This makes the situation just as bad for the people who stay as the ones who leave, since their workload increases. 

Look at your company values first, to guide your cost cutting decisions and reach out for help when you require additional cost reduction consulting services to achieve your financial targets quickly and effectively.

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COST SAVING OPPORTUNITIES ACROSS THE VALUE CHAIN

It can sometimes feel like a balancing act between keeping your doors open and supporting your hardworking employees. Consider the following opportunities to reduce costs by increasing value, capacity and performance of your people. Remember that decisions should support your company’s values and culture:

  • Streamline workflows, reducing single points of failure (like delays in approvals or decision-making)
  • Clearly define roles and responsibilities to reduce duplication of effort, clarify decision-making and important timelines to prevent delays in productivity 
  • Employ performance measurement and management, rewarding and coaching innovation and building alignment for cost saving initiatives
  • Re-skill/cross-train employees to add value when resource adjustments need to be made or automation replaces manual work
  • Ensure succession planning and organizational design is finely tuned to mitigate the cost of regrettable turnover and business continuity risk
  • Deploy strong change management and communication practices to ensure the efficacy of internal initiatives “stick” and are sustained to realize their full potential value

Our HR cost savings consulting services are designed to employ practical employee cost reduction strategies, increase buy-in and reduce the need to decrease or increase headcount

Improve performance measurement & management, training & development, and productivity while also improving morale. Let’s discuss how you can achieve greater value from your team!

The business of supply chain and logistics management is both complex and diverse. There are many opportunities within the Supply Chain to achieve cost savings. Creating a list of all high value supply chain and logistics cost reduction opportunities will help you to prioritize which initiatives to tackle first. Here are a few to start with:

  • Optimize transportation routes and freight management practices to limit fuel costs and related transportation labour costs 
  • Improve forecasting and transparency to reduce out of stocks and/or inventory gluts impacting cashflow
  • Optimize inventory management to address Shrink Reduction, Inventory Placement and SKU rationalization
  • Embrace automation to lower labour rates and increase the accuracy of inventory received and delivered (Technological advances enable accurate tracking and performance measurement across the supply chain, impacting your decision-making and ultimately your customer experience)
  • Consolidate carriers and 3PL/4PL entities to reduce costs, improve key internal and external SLA’s while creating less complexity for shared services to manage
  • Conduct supply chain scenario analysis and optimization to better organize your distribution centres, hub’s and last mile delivery

Our seasoned supply chain consultants understand the complexities within supply chains and deliver market-leading services to address multiple opportunities for end-to-end cost cutting while considering the value of shortened lead times.

Improve efficiency and decrease unnecessary expenses while improving product quality. It can be done! Here are some manufacturing cost reduction measures that can help your company thrive: 

  • Analyze and improve manufacturing processes by identifying bottlenecks, reducing cycle times, and increasing productivity (Use tools like value stream mapping, process flow analysis, and Six Sigma methodologies to streamline) operations and eliminate inefficiencies.
  • Assess energy costs to determine ROI for replacing specific equipment that will dramatically reduce your utility costs while increasing productivity and quality
  • Implement energy management systems, optimize lighting, heating, and cooling, and consider renewable energy sources to lower energy expenses
  • Identify manual tasks that can be automated to reduce labor costs and improve accuracy (Where possible, invest in advanced machinery, robotics, and digital technologies to enhance productivity, reduce errors, and increase output)
  • Examine the cost of waste and disposal costs to determine whether reduction or recycling programs are required
  • Enhance quality control measures to reduce rework, scrap, and customer returns (Implement statistical process control, conduct root cause analysis, and focus on prevention rather than detection to minimize quality-related costs)
  • Engage employees in cost-saving initiatives by soliciting their ideas and involving them in process improvement efforts and cost saving projects
  • Optimize your floorplan, pick paths and slotting processes to reduce movement of materials, decrease production times and increase warehouse capacity 

Our lean manufacturing consulting services employ methodologies to extract value and decrease costs within your operations. Allow us to take a look at your manufacturing challenges to find the cost reduction opportunities that will offer the greatest return.

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Implementing the right marketing cost reduction strategies requires careful decision making to ensure what you cut, does not impact your strategic objectives. Here are a few areas to consider the cost vs. the value of your marketing spend:    

  • Examine your current marketing budget thoroughly. Identify areas where you can make adjustments or eliminate unnecessary expenses. Look for expenses that don’t directly contribute to your marketing goals
  • Assess the performance and ROI of various marketing channels you’re using. Focus on the channels that generate the most leads or conversions and consider reducing or eliminating the less effective ones
  • Leverage social media through effective search engine optimization (SEO) and utilize audience targeting features through various platforms.  Eliminate non performing campaigns
  • Consider collaborating with influencers or industry partners who align with your brand. They can help promote your products or services at a fraction of the cost of traditional advertising
  • Regularly review contracts and agreements with marketing service providers. Explore the possibility of negotiating better rates or packages that suit your budget requirements
  • Implement marketing automation tools to streamline repetitive tasks such as email campaigns, social media scheduling, and lead nurturing freeing up resources to focus their skills on higher value added tasks
  • Optimize manufacturing resource planning (MRP), implement proper S&OP (sales and operations planning) processes, better forecasting and demand planning along with your production schedule to streamline order quantities, optimize changeovers and obtain the right mix of “make-to-forecast” and “make-to-order” parts

Our process improvement and cost reduction consulting services will improve marketing value and reduce costs to ensure you get the most bang for your buck.  

Now more than ever your business should investigate technological advances to determine which will help you cut costs while propelling your existing operations ahead of the competition.  Consider the following cost cutting measures:

  • Embrace cloud computing and Software as a Service (SaaS) solutions to reduce hardware and software costs (Paying for services on a subscription basis can be more cost-effective than upfront capital expenditures)
  • Utilize virtualization technologies to consolidate multiple servers onto a single physical server (This consolidation will maximize resource utilization and reduce hardware costs, energy consumption, and maintenance expenses)
  • Re-negotiate with technology vendors to obtain the best pricing and contract terms and ensure that you are only paying for services you need
  • Employ automation to reduce or replace manual work, streamline workflows and reduce spending on unused IT applications
  • Assess software licenses and eliminate or reduce access to those who utilize them  
  • Simplify your infrastructure through data warehousing, data lakes, integration hub’s with efficient API’s to reduce pockets of rogue analysis and reporting often creating rework and suboptimal decision making

There are so many technologies that this list of cost saving opportunities can go on and on. Let us assess your current technology to determine what can be done to advance your existing systems or what advanced technologies can be applied to support cost cutting strategies while advancing your business operations.

Procurement can add value to an organization if run effectively. If your procurement practises have lead to maverick spending, over or understocking, there are several things you can be doing to capitalize on cost savings: 

  • Invest in modern procurement technologies to gain visibility, reduce manual work, and support data-driven decision-making
  • Renegotiate vendor contracts to improve payment terms, obtain preferential pricing, consolidate vendors and deliveries
  • Conduct regular spend analysis to understand spending patterns, bottlenecks, and potential cost-saving opportunities
  • Participate in group purchasing arrangements or buying consortiums
  • Streamline your organizations “procure-to-pay” value chain through role alignment, streamlined business processes and technology enablement at critical control points and handoffs in the process

If your team requires support to obtain better value from your suppliers, we have the necessary skills and procurement experience to negotiate for you. Let us help optimize your procurement practice to derive better value today and for the long term.

  • Optimized Staffing and Training: Retailers should carefully analyze customer traffic patterns and peak hours to schedule staff effectively. Overstaffing during slow periods can lead to unnecessary labor costs, while understaffing during busy times can impact customer experience. Well-trained staff can also enhance efficiency, reduce errors, and lead to higher sales conversion rates.
  • Time and Motion Analysis allows you to see how your team spends their time.   Great retail organizations and store operations can then create equitable roles from the backroom to the cash register and identify cross training opportunities to increase productivity where the needs lie at any specific time.
  • Data-Driven Marketing and Personalization Within ECommerce: Investing in data-driven marketing and personalization, targeting advertising, dynamic pricing and abandoned cart recovery can lead to higher conversion rates, customer retention, and increased customer lifetime value, all of which contribute to cost optimization.
  • Energy Efficiency and Layout Optimization: Implementing energy-efficient practices, such as using LED lighting, optimizing HVAC systems, and using smart technology to manage energy consumption, can significantly reduce utility costs. Operational streamlining, like optimizing store layouts for better customer flow, reducing checkout times, and minimizing employee downtime, can also lead to cost savings.

COST SAVING SOLUTIONS BY INDUSTRY

Remember a good rule of thumb before cutting costs – never sacrifice product quality, which is likely why your customers chose you in the first place. Ensuring product quality can be quite costly, so scout out other costs to reduce so that product quality can be maintained. 

Here are some areas you can look for cost savings:

  • Implementing a robust inventory management system  ensures that stock levels are optimized, reducing the risk of overstocking or stockouts. Analyze sales data to identify fast-moving and slow-moving products, and adjust purchasing accordingly.
  • Optimize staff schedules to match peak shopping times while avoiding unnecessary overtime. Invest in cross-training employees to perform multiple tasks, allowing for better coverage without overstaffing.
  • Leverage technology to streamline operations and reduce costs. Utilize (POS) systems with inventory tracking to gain better insights into sales trends and reduce the risk of theft. Implement automated ordering systems to prevent overordering and manage supply chain costs efficiently.
  • Minimize waste in all aspects of the business, including perishable items, packaging, and other resources. Implement strategies to reduce food spoilage, such as using the first-in-first-out (FIFO) method to manage stock rotation

Some of all of these initiatives will work for your business but determining which will have the greatest impact both for short and long term is where we can help.   Our retail and grocery operations expertise formed the foundation upon which The Poirier Group was built. We’ll help identify which cost containment path will work best for your company and follow through with its execution. Let’s talk about how our consulting team can accelerate savings to help you meet your targets.

Cutting supply chain costs should be a strategic imperative for your business’s long-term success. By optimizing processes, enhancing operational efficiency, and embracing innovative technologies, you can eliminate waste, reduce expenses, and improve overall productivity. 

Here are a few areas to start:

  • Optimizing transportation routes and freight management practices to limit fuel costs and related transportation labour costs 
  • Improving forecasting and transparency to reduce out of stocks and/or inventory gluts impacting cashflow
  • Optimizing inventory management to address Shrink Reduction, Inventory Placement and SKU rationalization
  • Embracing automation to lower labour rates and increase the accuracy of inventory received and delivered (Technological advances enable accurate tracking and performance measurement across the supply chain, impacting your decision-making and ultimately your customer experience)

The Poirier Group’s industry-leading supply chain and logistics services will deliver the most appropriate cost-cutting measures to support a leaner competitive supply chain allowing you to pass on savings to your customers while maintaining profitability.  

Visit our Supply Chain Management Services section for further information on our services.   Contact us today to see how our supply chain expertise will produce better results, faster. 

The global health care landscape has undergone profound transformations. As nations and healthcare systems reevaluate their approaches, lessons learned from the pandemic have paved the way for a more resilient, patient-centered, and technology-driven healthcare future.

Healthcare is embracing innovation and technology-driven solutions now more than ever. Artificial intelligence, data analytics, and digital health platforms are revolutionizing disease diagnostics, personalized treatment plans, and drug development, promising a more precise and effective healthcare approach.  All these innovative approaches require significant investment, at a time when governments and institutions are tapped out.  There is no better time than now to reduce non value added work, to streamline processes and optimize resources for greater cost savings.  Here are a few areas to consider:

  • Preventive Care and Health Promotion leads to early detection and management of diseases, reducing the need for expensive treatments in advanced stages. Encouraging regular check-ups, promoting healthy lifestyles, and implementing vaccination programs will help prevent costly illnesses
  • Streamline administrative processes to reduce paperwork. Implement electronic health records (EHRs), to improve billing and claims processing systems, and reduce redundant administrative tasks 
  • Consider a values-based care approach to focus on patient outcomes and cost-effective treatments. Value-based care emphasizes quality and efficiency, encouraging healthcare professionals to deliver the best care possible while managing costs.

Check out our Business Process Improvement page to understand how The Poirier Group drives efficiencies by implementing efficient workflow management solutions. Our performance improvement and Lean Six Sigma experts will find the time and money savings that you need to advance what matters most – your patients wellbeing and the cashflow to implement the latest innovations in healthcare.

The need for private equity firms to cut costs depends on the specific situation and objectives of the companies they invest in. If the goal is to improve financial performance and increase portfolio value over time, then cost-cutting can be one strategy to achieve these objectives, but it is not the only approach.

There are many areas to optimize within a portfolio company but choosing the best opportunities is often ‘hit or miss’.  Our operations experience and lean six sigma acumen applied across a broad set of mid market companies provides us with the best perspective to assess your portfolio operation and determine the right path forward to creating the value your shareholders expect. 

Private equity firms often assess each portfolio company on a case-by-case basis to determine whether cost-cutting is an appropriate strategy. It’s essential to strike a balance between cost optimization and strategic investments to ensure the long-term health and success of the business. 

Let our cost reduction experts assess and deliver the most advantageous cost cutting measures for your latest acquisitions, freeing up cashflow and redirecting funds for performance improvement within the timelines you require.  

TPG applies Lean Six Sigma methodologies to your manufacturing operation to reduce waste, inefficiencies and variation in your manufacturing process.   Here are some areas you can investigate to determine if the ROI for each opportunity makes sense in your operation:

  • Raw Materials: Seek alternative suppliers, negotiate better prices, or explore using recycled materials where feasible.
  • Labor Costs: Review labor efficiency and productivity. Consider outsourcing non-core tasks
  • Inventory Management: Reduce excess inventory levels to avoid holding costs, obsolescence, and waste. Implement just-in-time (JIT) inventory practices to minimize carrying costs.
  • Waste Reduction: Identify opportunities to minimize the production of waste and optimize the use of materials
  • Waste For Sale:  Identify and quantify your waste streams. Investigate local manufacturers and networks who could benefit from your waste in their manufacturing processes.  
  • Maintenance and Downtime: Regularly maintain equipment to minimize downtime and related losses. Properly train staff to handle routine maintenance tasks.
  • Transportation and Logistics: Optimize transportation routes and consolidate shipments to reduce transportation costs. Negotiate better freight rates with carriers.
  • Quality Control: Enhance quality control measures to minimize defects, rework, and warranty claims, which can result in significant cost savings over time.
  • Technology and Automation: Identify manual labor opportunities that could be reduced through automation and other technologies.
  • Encourage innovation: through collaboration with your operations team to brainstorm cost-saving ideas and enhance buy in of solutions.

Our lean approach to optimizing manufacturing operations quickly identifies valuable time and money saving opportunities while also increasing productivity and performance.  We invest in training our team so that you get the latest Lean Six Sigma Black Belt resources who provide superior advice, and strategic solutions that will transform your operations for superior results.  

Our team of experienced Lean Six Sigma engineers build and/or implement custom software solutions to automate tedious processes within your business. Cloud-based customized software and dashboards can provide up-to-date data transparency across your business, allowing you to make real-time decisions.  If you are looking to achieve cost reductions with IT, here are some areas to assess and prioritize initiatives based on their ROI:

  • Cloud Migration: Consider cloud services that offer pay-as-you-go pricing, allowing you to scale resources based on actual needs
  • IT Consolidation and Standardization: Reduce your IT infrastructure by consolidating servers, databases, and applications that will lead to cost savings in hardware, software licensing, and maintenance
  • Open Source Software: Consider using open-source software instead of proprietary solutions. Open-source software often comes with no licensing fees, reducing software-related expenses
  • Remote Work and BYOD (Bring Your Own Device): Embrace remote work and allow employees to use their own devices when possible, reducing the need for expensive hardware procurement and maintenance
  • Outsourcing and Managed Services: Consider outsourcing non-core IT functions or using managed services for certain tasks. This can be more cost-effective than in-house staff for certain specialized tasks
  • Optimize Software Subscriptions: Assess your current list of software subscriptions to eliminate duplicate services and ensure you’re only paying for what you or your team is actually using
  • Automation: Implement automation tools to streamline repetitive tasks and reduce the need for manual intervention, ultimately saving time and labor costs
  • Long-Term Planning: Develop a long-term IT strategy that aligns with the business goals and helps avoid sudden unplanned expenses

Remember, cost reduction should not come at the expense of compromising security or system performance. It’s essential to carefully evaluate each cost-cutting measure’s potential impact on the organization and its ability to continue functioning effectively.

Leave the heavy lifting to our IT process improvement consulting team and enjoy the time and money savings that follow.  Technology solutions are critical for saving money and delivering value in the modern world.

APPLYING LEAN SIX SIGMA FOR IMPROVED COST CUTTING RESULTS

Although direct cost savings are easy to quantify, there are always larger indirect cost savings that can be found to increase efficiencies, reduce resource requirements, improve accuracy, productivity and customer experience all of which ultimately impact your bottom line. 

Additionally, as your organization grows, many indirect cost savings initiatives lead to cost avoidance by not having to hire more staff as you grow setting you up to scale efficiently.

If your internal team does not have the capacity or capability, our team of lean six sigma consultants can help.  They will identify and extract the highest cost savings possible by implementing methodologies to define both direct and indirect cost reduction opportunities.  They will work with your team to ensure that any cost reduction strategies continue to support your current operations and sustain continual savings while also meeting your strategic objectives.

We do this by:

  • Automating manual processes to optimize resources 
  • Redirecting resources to value add activities that support your strategic objectives
  • Aligning or redefining Roles/Responsibility to better support workflow, collaboration, and accountability
  • Reducing turnover through improved employee engagement, ensuring company values are entrenched into operations 
  • Improving productivity, quality and operating capacity
  • Leveraging advanced analytics and business intelligence to address the right root causes faster
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Angelo Farneti, DirectorAcklands Grainger
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