Tag: strategic cost management

cost management

Top Cost Management Techniques that Businesses Shouldn’t Ignore

Cost management is an important process that helps predict the future expenses of a business and determines the success of organizations. It helps companies to coordinate all resources entailing planning, organizing, directing and expenditure of fund to complete a particular project or run a business. Cost management further allows companies to improve business cost efficiency by implementing measures that can aid in cost control.

However, not all businesses are able to implement a cost management plan that can ensure an adequate supply of funds from the right source at the right time to meet their financial needs. They require potent cost management strategies that can efficiently manage available resources available in the form of men, materials, and machines and help them meet their organizational goals.

At SpendEdge, we understand the impact that a strategic cost management plan can have on the growth of a business. Therefore, in this blog, we are highlighting the basic cost management techniques that are critical for any business to stay competitive in the long-term.

Managing cost can help you design effective business strategies. Want to know how? Request a free demo now!

What are cost management techniques?

#1 Minimize overhead cost

Reducing overhead costs is the most basic cost management technique that companies need to adapt to sustain themselves in the long run. Unless the company isn’t making profit straight away, high overhead costs can pose a major problem for the business. The overhead costs occurring due to inventory, bills, salaries can easily be lowered by efficient budget planning, time and inventory management.

#2 Inventory management

Inventories can be a major source of cost and revenue generation for companies offering products. Therefore, companies need to know their inventory requirements to avoid stocking excess inventory. An effective inventory management process can help companies to invest their capital strategically rather than deploying it in the inventory stocks.

Interested to know how inventory management helps in cost control?

Request a free proposal and access our portfolio of cost management solutions.

#3 Global outsourcing

Outsourcing is one such cost control avenue that companies necessarily need to explore. If there are certain aspects of a project that can be delivered by someone else at better prices, then outsourcing can be considered as one of the most useful cost management techniques. Outsourcing projects globally can further help in cost management for businesses.

#4 Capitalize on technology

Capitalizing on technology is a strategic decision that helps businesses to streamline their business operations productively. It allows start-ups and developing businesses to compete with much larger comapnies in the industry. Moreover, technology can be implemented according to the needs of the organization.

Want to know how you can implement these cost management strategies for the benefit of your organization? Get in touch with our experts today!

 







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Spend Analysis : Assessing the Current Spend and Improving Supply Chain Efficiency for a Medical Devices Company – SpendEdge

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

The client is a leading medical devices company, specializing in the development of medical devices, laboratory instruments, and diagnostic products. The company supplies devices to hospitals, laboratories, and clinics worldwide. The company has ingrained its place as a leader in the medical devices market.

The Business Challenge 

The future looks sharp for the medical devices industry. With global economic growth, innovations and an aging population that has a growing need for healthcare, revenue for medical devices is poised for growth. However, in this turbulent environment, companies that can shift their supply chain priorities and better manage spend will be able to deliver significant value. Moreover, the rising need for supply management and strategic cost management have urged players in the medical devices manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical devices manufacturing space to identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. The spend analysis solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.

The client, a renowned medical devices company was facing challenges in reducing the cost across the supply chain and managing their tail spend. While public spending has become endemic, the client realized the need to drive more competitive pricing. Moreover, the client’s objective was to adopt spend analysis strategies to identify and optimize their spend areas. Additionally, the client needed to streamline their supply chain management and subsequently maximize profits by leveraging SpendEdge’s spend analysis solutions.

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