Identifying Controllable and Actionable Expenses PPT

This PPT slide, part of the 36-slide Enterprise Cost Reduction Approach PowerPoint presentation, titled "Understanding What Is Controllable: Determine what is actionable from a demand management perspective" provides a framework for analyzing organizational spending. It emphasizes the importance of establishing a baseline for total spend, which is indicated as $1.1 billion. The focus then shifts to identifying the controllable portion of this spend and determining which categories can be influenced through demand management strategies.

The visual representation includes a pie chart that breaks down total controllable spend into various categories. Notably, transportation constitutes the largest segment at 28%, followed by utilities at 12%, and direct materials also at 12%. Other categories, such as packaging and outsourcing, account for 11% and 5%, respectively. This segmentation allows for a clearer understanding of where the majority of expenses lie and highlights areas that may require more focused management efforts.

To the right, the slide further delineates "Actionable" expenses, suggesting that not all controllable spend is equally actionable. This distinction is crucial for executives aiming to prioritize initiatives that can yield the most significant impact on cost reduction. The example provided illustrates how specific expenses can be categorized and analyzed for potential savings.

The overall takeaway from this slide is the necessity of a structured approach to expense management. By identifying and categorizing controllable and actionable expenses, organizations can better allocate resources and implement targeted strategies that drive efficiency and cost savings. This slide serves as a foundational tool for executives seeking to enhance their demand management capabilities.

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