cost reduction strategies


by subodh singh - Date: 2007-02-07 - Word Count: 115 Share This!

In today's world when Corporate are struggling for profits and with fierce competition in the market, cost reductions, productivity enhancement and lean organizations have become today's mantra s for survival.Folllowing are the key area where you can implement cost reduction methods with significant results. Following are major areas of 1. Raw material procurement: a) Bulk buying b) Opportunity buying c) Make or buy d) Annual Rate contracts

2. Logistics- Inbound and Outbound:

a) Route mapping b) Loadability

3. Warehouse and Stores: a) Low inventory b) Space management c) EOQ

4. Manufacturing Process (Production) : a) Lean manufacturing b) Automation c) OEE

5.Energy, fuel & Water a) Motors b) lighting c) compressors d) fuels e) recycle f) Waste water management 6.Information Management Enterprise Resource management

7. Human Resources Out sourcing

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Related Tags: profit, savings, procurement, energy savings, cost reduction, raw material

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