Strategic Cost Management
Standard Keys’ strategic cost management services enable organizations to cut down expenses in categories that yield little impact and optimize spend in areas that drive sustainable growth.
We work with companies across a range of industries to adopt a strategic cost management approach. This ensures that our clients successfully structure saving programs to optimize spending and create a significant competitive advantage for future growth. The program empowers companies to address real investment decisions and create value to prosper.
Why do we need strategic cost management?
Traditionally, companies resorted to cutting cost arbitrarily in the short-term without carefully considering sustainable change, the effect on the people and integration with the overall business strategy. These approaches to cost reduction are predominantly reactive, fragmented and inconsistently implemented. Additionally, they lacked any visibility into long-term results to measure their effectiveness.
In today's business environment of increased global competition, new markets and changing demographics, successful companies are rethinking their approach to cost structuring and control. The pace of change requires that organizations adopt a multi-faceted and renewable cost competence through strategic cost management programs. Companies that are taking a strategic approach to managing cost are thriving in today's business environment. They build a balance between a competitive cost structure, cost-effective strategic execution, and investment in the future and growth of their companies.
How will we help manage cost?
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Understand what your cost and drivers are.
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Set targeted key performance indicators to keep cost under continued observation.
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Share best practices and benchmark the cost base against competitor companies.
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Apply stringent cost accounting at the operational level and through supplier management.
Creating a competitive cost base
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Know how activity relates to cost and output.
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Extract unnecessary cost after analyzing the value chain.
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Ensure that growth is funded through cost efficiency.
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Robustly track the execution of strategy against plans and manage performance
Cost effective strategy execution
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Enable control and intervention
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Track the marketplace to effectively assess the costs of responding to market changes.
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Review the business environment for different cost-effective methods or business models
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Constantly challenge operational costs to push investment in research and development
Continuous improvement