This PPT slide, part of the 97-slide Strategic Cost Reduction Training PowerPoint presentation, outlines a structured approach to developing a long-term cost reduction plan, categorized into 3 distinct timeframes: short-term, medium-term, and long-term. Each phase is designed to address specific actions and outcomes that a business can pursue to achieve cost efficiency.

In the short-term phase, which spans 0 to 6 months, the focus is on 'quick wins' that can immediately lower the cost base. This includes initiatives like freezing hiring and overtime, which can quickly impact expenses without significant structural changes. The emphasis is on achieving noticeable results in a brief period.

Moving to the medium-term, covering 6 to 12 months, the strategy shifts towards optimizing the cost base. This involves more comprehensive actions such as re-engineering core processes and optimizing ERP systems. The goal here is to streamline operations and enhance efficiency, which requires a deeper analysis of existing processes and potential improvements.

The long-term phase, extending from 12 to 18 months, aims at creating a low-cost operating model. This is a more transformative approach, including actions like optimizing the manufacturing network and rationalizing products and channels. Businesses are encouraged to consider divesting underperforming units and pursuing acquisitions to leverage scale. This phase demands significant commitment and strategic foresight, as it involves reshaping the organization for sustainable cost management.

Overall, the slide provides a clear roadmap for organizations looking to implement a comprehensive cost reduction strategy, highlighting the necessary steps and expected outcomes at each stage.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Cost Reduction Assessment Cost Management Cost Reduction Strategic Foresight Manufacturing Hiring