Downward pressure on prices, intensifying competition, pressure from shareholders and the need to find cash to fund growth are drivers leading most companies to create a cost aware culture.
Many companies have adopted cost improvement as part of their standard operations, however, their current activities may not be robust enough to face the challenges of a slowdown.
Most companies try to save 2% of sales annually – and don’t succeed!
9 out of 10 cost management (reduction) programs fail to achieve their targets. Only 59% of cost saving measures are successful.
Most cost improvement programs lack one or more of the critical ingredients for success