What do you do if your business needs to cut costs and boost financial performance?

We actually had this being a major area of focus in our software services organisation and one of the areas of cost savings I was involved in was optimizing all our 3rd party vendor agreements. This began with an audit of all our current vendor contracts to ensure the accuracy of the data followed by a review of each vendor contract with the respective business leader that owned the engagement. The goal was to determine whether the service was really necessary. If not it was canceled as soon as contractually feasible. If the service was needed; could it be scaled down, substituted with an internal solution or the cost renegotiated? This was carried out over 3 calendar quarters and eventually saved the company a six figure sum.

A princípio olhar para o seu processo de forma crítica: 1) Tenho processo definido para todas as áreas que envolvem custos? Se sim existe processo de aprova??o? 2)As aprova??es tem como base um Budget? Ou s?o meras formalidades? 3) Avaliar contratos x servi?os prestados eles s?o condizentes? 4) Utilizar BI para efetuar análises auxilia a identificar os ofensores. 5) após análise precisa abrir um plano de a??o para colocar em prática e controlar as a??es -

Me gusta revisar primero las partidas más grandes de costos y gastos....las que representan el 80% del total.....siempre hay algo que optimizar.....

If the business needs to cut costs and boost financial performance, then the following steps can be followed: Step 1: Conduct an internal cost analysis, and then benchmark with industry Step 2: Determine cost optimization opportunities basis: (i) ERRC framework - Use the ERRC framework to see if there are activities that can be eliminated, reduced, raised or created. for eg, costly cash rentals can be replaced(reduce) by requesting employees to book Uber(raise) (ii) Check the alignment of the initiatives with strategic objectives. For eg, BOM/recipe dilution that impacts product performance (iii) list of areas of operational efficiency through automation and reduction in waste. Renegotiation with suppliers and review supplier SOB.

Muitas organiza??es, independente do tamanho, acreditam que para reduzir custos devem prioritariamente diminuir o quadro de funcionários. Eventualmente esta é uma alternativa necessária, porém deixam de lado outros pontos que na maioria das vezes trazem resultados ainda melhores. Desburocratiza??o e Simplifica??o dos processos internos, Revis?o do Plano de Negócios com o objetivo de dedicar esfor?os nos produtos/segmentos/clientes com maior potencial de rentabilidade, Avalia??o dos Custos Variáveis e benefícios fiscais, Plano de Metas/Incentivos para a equipe Comercial viáveis e factíveis, Negocia??o e renegocia??o com fornecedores, etc.

Have your internal process owners and their service providers develop process performance metrics on opportunity business proceses and develop roadmap, improvement tasks and schedule. Assign an executive to oversee improvement progress and tie to executive performance compensation.

Quando os tempos s?o difíceis e os obstáculos parecem intransponíveis, é quando encontramos ótimas solu??es, muitas vezes com baixo custo e grande eficácia. Revisar processos é parte fundamental de qualquer empresa. Empresas inovadoras o fazem sob as seguintes perspectivas: 1. Otimiza??o e melhoria de performance; 2. Redu??o de tempo, desperdícios e custos; 3. Atualiza??o dos seus processos e sistemas com as tecnologias mais atuais, como, por exemplo, IA.; 4. Renova??o e revitaliza??o do time. Nem sempre um atleta performa da mesma maneira no mesmo time, durante toda a sua carreira, rota??o também é importante. Pelo menos a cada 6 meses todos os CEOs e líderes de suas empresas ou entidades sociais devem revisar processos.

Ao definir quais processos cortar, FA?A GEMBAS! Entenda porque as coisas funcionam assim hoje e se a mudan?a é válida. N?o seja um "cumpridor de miss?es" que deixa um rastro de sujeira para o próximo gestor limpar.

A long term data strategy need to be created. This data strategy will create opportunities within your organization that can be realized. As one of the benefits of having a strategy, can helps define cost optimizations by being backed by data. The data strategy to drive decisions on costs, proficiencies and process improvements which is easily determined with the real time data at the right time.

Otimizar processos após separar os insights, melhorar o planejamento para redesenhar, simplificar e até automatizar. Isso traz eficiência e com certeza pode ajudar a cortar despesas.

Negocia??es de contrato devem fazer parte da rotina em todas as partes do ciclo do contrato. Além de sempre buscar visualizar se solu??es tecnológicas melhores n?o podem ser empregadas.

In this moment, the negotiation of contracts is fundamental. At first, it is necessary to assess which contracts are really indispensable to the organization, on several occasions, one comes to the conclusion that certain initiatives that are not prioritized are obsolete, and long contracts that run their course and have recurring expenses that are not evaluated on a monthly baseline. Once the unnecessary contracts have been eliminated, it's time to renegotiate the prioritized initiatives with suppliers.

Negotiate better deals: Take the time to negotiate better rates with suppliers and vendors. Explore options for bulk purchasing or long-term contracts that can result in cost savings. Building strong relationships with your suppliers can also lead to favorable pricing and terms

Negotiate With Vendors: Negotiate better terms with suppliers, seek volume discounts, or explore alternative sourcing options to lower costs without sacrificing quality.

Para mejorar tus habilidades de negociación con los proveedores, puedes considerar aplicar las siguientes acciones estratégicas: -Reasignación de cuotas entre diferentes proveedores para lograr un mix más favorable en términos de costos. -Negociación individual con aquellos proveedores que presenten costos más elevados, con el fin de comprender su estructura de costos y explorar formas de reducirlos. -Estimular una competencia sana entre los proveedores para obtener precios más bajos y una mayor eficiencia en la producción.

If you are hitting a low, you are most probably coming out of a high. If yes, the first data point is to control any expansionary measures taken then. This could be addition of manpower, offices, geography or a more casual approach to operating expenses. These are all profit "leaks" in a down turn. As a business owner or manager rely on your intuitive feedback in the situation. It is rarely wrong. Then use tools to compare how various expense heads have moved over the years and their co-relation with revenue. The third vector is to compare profits % with revenue. Between these two an answer will be found.

Cultivate a culture of sustainability and environmental stewardship throughout the organization to drive ongoing waste reduction efforts.

Reduzir o desperdício é uma estratégia eficaz para cortar custos. Minimizar o uso de recursos, evitar retrabalho e otimizar o uso de materiais resultam em economias significativas, melhorando a eficiência operacional e aumentando a rentabilidade da empresa.

In many cases there are a lot of processes and processors that are not necessary. While we need control how many digital signatures and backing documents do we really need reviewed by too many people. Trust your people and if you have concerns have one team that samples for areas where wrong-doing or breaching of rules may have occured - be they deliberate (rare in my experience) or unintended (most likely).

Implement initiatives to minimize waste in your operations, whether it's reducing excess inventory, optimizing energy usage, or cutting unnecessary expenditures.

Na minha opini?o, funcionários empoderados contribuem significativamente para a eficiência da empresa. Isso envolve dar-lhes acesso às ferramentas e dados necessários para tomar decis?es informadas.

Invest in tools that give you full visibility of the entire P and L and all processes in between including the value chain. This not only gives you control but allows the organization to embrace proactive and predictive analysis thus being able to foretell a loss or gain in advance. Moreover, these tools are important for reporting and business case buildup in case of future investments. An all inclusive tool allows the organization to determine necessary guardrails and measures that need to be put in place to avoid losses.

The way to empower employees is to have their input be a part of the decision making process. The decisions from employees give ownership and accountability which can be measured. The data will provide feedback on these decisions that everyone can own and make any course corrections as needed.

To cut costs and improve financial performance, empower employees. Encourage cost-saving ideas from all levels. Foster a culture of ownership and accountability. Together, we can navigate challenges while prioritizing the well-being of our team.

In one of my previous jobs I was told that IT department needs to cut down expenses. Most likely two positions will be eliminated. I brainstromed other ideas with my team and shared them with the whole department. As a result, all jobs were kept and department agreed to cut all travel by 50% (replacing with virtual meetings) going forward and cut bonuses by 50% for the next two years.

Na minha vis?o, a chave está em n?o apenas estabelecer KPIs, mas garantir que eles sejam relevantes, alcan?áveis e, acima de tudo, alinhados aos objetivos estratégicos da empresa.

A express?o “monitorar resultados” traz facilmente à mente a imagem de um super sistema de BI, com gráficos, tabelas, filtros etc. A experiência tem me mostrado que essa realidade existe, mas n?o é exclusiva! Me recordo da fala de um colega, ex-diretor financeiro em um grande banco: “a vida n?o cabe numa planilha Excel”. Com esse argumento talvez o leitor imagine que n?o defendo o uso de sistemas automatizados para o monitoramento de resultados, calma! N?o tire conclus?es precipitadas! O que desejo partilhar aqui é que estes sistemas s?o necessários e de grande importancia, mas é preciso aprender a ler para além do que os números mostram. Há informa??es lidas nas entrelinhas, no clima da organiza??o, e isso n?o cabe no Excel!

the supply chain, in particular through an active contract rationalization policy and optimization of the entire supply chain, can largely contribute to more efficient management and cost optimization.

Implementing regular reviews and ROI measurements help transform operations, preventing from merely "surviving" and setting on a growth path.

No meu ponto de vista temos que realizar análises periódicas dos resultados em rela??o às metas estabelecidas e identificar as áreas de melhoria e oportunidades. Acredito também que ter uma ou algumas ferramentas para esta gest?o faz toda a diferen?a e que em alguns casos as próprias planilhas podem ser bem úteis.

Apart from what has been already mentioned, I would like to suggest the following: 1. Reduce decisioning chains, flatten hierarchies and remove non-value adding intermediaries so that go to market is faster while at the same time business comes closer to the customer. 2. Identify and minutely track all your business process and value chains to understand where costs can be trimmed and customer satisfaction handled at each step. 3. Make operational processes more efficient and agile. 4. Create more value added products by composing existing capabilities or combining 3rd party offerings with home grown ones. 5. Improve audit and compliance readiness posture by automating checking of standards.

Trabalhar o modelo híbrido ou remoto caso a empresa seja 100% presencial, ajuda a reduzir custos consideráveis com energia e transporte. Além disso,.flexibiliza a rotina do colaborador.

Na minha vis?o todos os itens est?o apontados para a Cultura da empresa. Se os funcionários sentirem que pertencem a organiza??o, que tem voz para as idéias e tem senso de dono, a empresa n?o precisa se preocupar em cortar custos, pois todos já vivem pelo essencial e pelo propósito e o resultado financeiro onde se trabalham pessoas felizes é sempre melhor que nas outras empresas.

Review your expenses and identify areas where you can reduce costs. This could include renegotiating contracts with suppliers, reducing energy consumption, or streamlining processes to improve efficiency. Consider implementing cost-cutting strategies such as reducing headcount, optimizing delivery span, pyramid rationalization, and resource rotation1 Explore opportunities to increase revenue, such as expanding into new markets, developing new products or services, or improving sales and marketing efforts. Monitor your financial performance regularly and make adjustments as needed to stay on track. This could include reviewing key performance indicators, analyzing financial reports, and making data-driven decisions.

Por fim, na minha opini?o, n?o se deve esquecer da cultura organizacional. Uma cultura voltada para a melhoria contínua e a tomada de decis?o baseada em dados pode fazer uma diferen?a enorme. Também é importante manter um equilíbrio, garantindo que as medidas de corte de custos n?o prejudiquem a moral dos funcionários ou a qualidade do produto/servi?o oferecido.