PPT Slide: Comprehensive Cost Reduction Strategies Across Value Chain

Comprehensive Cost Reduction Strategies Across Value Chain PPT

This PPT slide, part of the 144-slide Complete Guide to Strategy Consulting Frameworks PowerPoint presentation, outlines various cost reduction opportunities that span the entire value chain of an organization. It categorizes these opportunities into 3 main areas: enterprise-wide opportunities, asset management opportunities, and function-specific opportunities.

Enterprise-wide opportunities are highlighted as cross-functional, indicating that they can influence multiple areas within the organization. The focus here is primarily on reducing Selling, General, and Administrative (SG&A) costs. This suggests a strategic approach that requires collaboration across different departments to achieve significant savings.

Next, asset management opportunities emphasize the importance of improving the efficiency of fixed assets and reducing net working capital. This area mainly targets capital efficiency, which is crucial for organizations looking to optimize their asset utilization and enhance overall financial performance.

Lastly, function-specific opportunities are detailed for primary and support activities. This section identifies specific areas where cost reductions can be realized, particularly in Selling, General & Administrative costs and Cost of Goods Sold (COGS). The operational and transactional nature of these opportunities suggests a more tactical approach, focusing on day-to-day activities and processes.

Overall, the slide provides a structured view of potential cost reduction strategies, emphasizing the need for a comprehensive approach that encompasses both strategic and tactical initiatives. For decision-makers, this framework serves as a guide to identify and prioritize areas for cost savings, ultimately contributing to improved financial health and operational efficiency.

This slide is part of the Complete Guide to Strategy Consulting Frameworks PowerPoint presentation.

This presentation is created by ex-McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It is a compilation of 20 Strategy Consulting frameworks, including ones developed by McKinsey, BCG, AT Kearney, and PwC.

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