Sustainable cost reduction for your business
We greatly increase the success and performance of the organizations we follow. Our approach offers you a modern and tailor-made solution to sustainably boost the profits of your organization.
The current environment of cost structures
Given the volatility of the macroeconomic environment, most companies in recent years have been striving to reduce costs wherever they can, as quickly as possible.
Most companies' approach to cost reduction focuses on overall staff reduction and the freeze on discretionary spending. These types of cost reductions could be maintained for a short period of time, but market pressures will eventually dictate an increase in staff, an increase in compensation and the restoration of marketing, travel and training budgets.
Many companies use unstandardized, non-standard internal processes that are difficult to outsource profitably. Non-standardized processes often require process-specific knowledge and skills. As a result, ramping up an activity requires an increase in staff and costs.
Similarly, many companies have not fully exploited the process automation capabilities. While automated processes have very low marginal cost and are highly scalable, companies with manually intensive processes can not increase production without increasing staff.
Optimizing general and administrative expenses enables sustainable cost reduction
Research conducted by smartMILE, a strategy and management consulting firm, has revealed that the key driver of sustainable cost reduction is a strategically designed service delivery model.
Companies that have, over the years, developed and implemented an optimized service delivery strategy - a strategy that defines in a targeted and intelligent way how certain jobs are done, where and by whom - are much better able to achieve a sustainable and progressive reduction in the costs of their operations.
Rather than relying strictly on overall staff reductions and discretionary spending freezes to reduce costs, these top performers have developed service delivery strategies that leverage business process improvement programs, shared services and opportunities to outsource business processes to achieve structural objectives. Cost reduction that provides a competitive advantage whether the economy is declining or rising.
What next step can we consider?
We look forward to serving you
smartMILE helps you optimize your general and administrative expenses
smartMILE provides benchmarking services, consulting programs and transformation consulting solutions that can help your business develop and execute an optimized service delivery strategy.
smartMILE provides factual advice on cost optimization, backed by extensive practical experience and our measurement of processes, benchmarks and practices from our benchmarking with Swiss companies.
We can give you insight into how top performing companies structure and perform their back office functions, identify the biggest gaps between your performance and third party performance, and help you build and execute a sheet. transformation route.
To find out more about how smartMILE can help your company reduce costs in a sustainable way, contact us today.
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