Cost Diagnostics and Improvement
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To grow and improve profitability, organisations need to focus on business efficiency - reducing costs, improving operations and making the best use of assets
How we can support you
We help clients identify where their major cost and value drivers are, and work with them to assess how they can be better managed. Our analysis addresses the benefits and risks of optimising costs and value, in both internal processes and external relationships with customers and suppliers.
Having identified the opportunities for improvement we help clients execute their improvement programmes to realise the benefits and help them develop effective operations throughout their value chains.
- You want to know how your costs compare to the competition, how your operations could be even more competitive and what the best opportunities for profit improvement are;
- You are considering outsourcing and want to assess the pros and cons for your business;
- You want to develop and maintain a culture of continuous cost containment, without damaging the business through periodic 'slash and burn' cost-cutting;
- You need to understand how to interact with both existing and new customers efficiently;
- You wish to optimize your supply chain to reduce the cost of procuring goods and services and cost of supply to customers;
- You want to know how to achieve maximum production efficiency throughout;
- You want to improve the effectiveness of the corporate centre.
PwC's Cost Diagnostics and Improvement Services cover the following analyses/assessments:
- Evaluating the supply chain strategy,
- Developing an effective supply chain that supports the efficient flow of goods from suppliers through to customers,
- Optimizing your procurement function with consideration of both specifics of your business and best practices such as consolidation/centralization of procurement, e-procurement,
- Improved procurement processes, organisational redesign and working capital reduction,
- Optimizing conversion operations,
- Reducing your operating costs and minimising your waste to enhance profitability,
- Providing assistance in determination of the appropriate stock level, establish an effective distribution network, and find the right interaction with suppliers and contractors,
- Helping in creation of effective distribution network, analysis of required collaboration with suppliers/customers level,
- Analyzing different logistics’ models such as shared services or outsourcing,
- Eliminating activities that do not add value to the business,
- Developing key performance and risk indicators and presenting appropriate detail to different levels of management,
- Designing and putting in place activity based costing to improve profitability,
- Evaluating corporate overhead structure and organization to further identify cost reduction opportunities,
- Transitioning core and non-core service areas to new, more effective, lower cost models.