This PPT slide, part of the 36-slide Enterprise Cost Reduction Approach PowerPoint presentation, presents a comparative analysis of cellular phone reimbursement costs for Client X, illustrating the impact of strategic sourcing and demand management. It highlights 2 key strategies to reduce expenses effectively. Strategic sourcing focuses on identifying a vendor that delivers the best quality at the lowest price, while demand management aims to minimize reimbursement by assessing employee needs for cellular phones.

The table provides clear metrics before and after implementing these strategies. Initially, the client had 3,500 employees with an average cost of $100 per employee, resulting in a total spend of $350,000. Post-implementation, the number of employees eligible for reimbursement dropped to 1,250, and the average cost per employee decreased to $80. This led to a significant reduction in total spend to $100,000.

This example serves as a practical illustration of how targeted strategies can lead to substantial cost savings. It emphasizes the importance of evaluating both vendor options and employee needs to optimize expenses. The metrics presented are straightforward, making it easy for stakeholders to understand the financial benefits of these initiatives. The slide effectively communicates the potential for operational efficiency and cost reduction, which is crucial for organizations looking to streamline their expenses. The clear before-and-after comparison provides a compelling case for adopting similar approaches in other areas of the business.

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Cost Reduction Assessment Cost Reduction Strategic Sourcing