Save to prosper: from cost reduction to cost optimization
Most companies fail to sustain cost reductions after the economy begins to recover from the downturn that forced those reductions.
- In this report, we suggest that effective cost reduction should become engrained in the way companies do business. (pdf, 853.5kb)
60% of businesses fail to sustain cost reduction programs, despite evidence that sustainable cost reduction pays long-term dividends.
We have identified some of the challenges that businesses are likely to face in trying to achieve cost reductions, and we suggest strategies for overcoming those barriers – both in the near term and the long-term.
Further, we highlight some leading business innovations and elements of the green agenda that can be harnessed by companies for cost reduction, detailing how these integrate with conventional cost reduction strategies. Learn more about Ernst & Young's Climate Change and Sustainability Services.