In this video, learn how to identify areas where cutting costs may hurt more than help.
- When you're thinking about cost reduction, … one of the questions is, … do we reduce the amount of investment in certain areas? … And I think it's really dangerous to cut your investment. … But of course if you can be scientific, … if you can work out whether it's worth it or not, … then that's the best way. … So I'd be very careful about … under-investing in people, for a start. … You don't want to have cheap people and not train them. … You're never going to win the battle with your competitors … if you do that. … But also not investing properly in machinery … or even buildings, … I think there's a lot of hidden cost … in having buildings that are not efficient. … And we've already talked about stock and work in progress. … One of my customers for example, … they are not very good at paying their bills. … They're always having cash flow problems … and so they get put on stop by some of their suppliers … so they're always short of work in progress … and they quite often end up moving stuff around …
- Different cost areas affecting your business
- Comparing cost vs. income
- Enhancing your work environment
- Focusing on the most important management tasks
- Getting better deals on raw materials and labor
- Recognizing your optimum quality level
- The hidden costs of subcontracting
- Where to avoid cutting costs
- Top ten cost-cutting actions to take
Skill Level Beginner
What to expect1m 3s
1. What to Reduce
2. Reducing Labor Costs
3. Costs Other Than People
4. Top 10 Tips
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