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Incorporating cost optimisation into your business strategy on an organisation-wide scale helps to improve the efficiencies of your business whilst generating value both internally and externally.
In any organisation, across any industry, there is usually one common denominator—change is a constant.
As technologies such as artificial intelligence, autonomous transportation, and virtual reality applications continue to evolve and make inroads within the commercial sector, the ways in which your organisation conducts business will likely transform in the coming years. Whether business changes are caused by emerging technologies or subsequent disruptors, data protection, or new legislation, your organization will have to develop the nimbleness to pivot operations accordingly.
However, emerging technologies and changes don’t only represent potential challenges, they can also signify opportunities to propel your organisation forward.
Download our whitepaper to explore more of this information and to see how it can add value to your organisation.
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‘In any organisation, across any industry, there is usually one common denominator—change is a constant.’
Leverage your suppliers by understanding their industries
As your organisation moves towards implementing cost optimisation strategies, this is an opportune time to learn more about your suppliers’ industries and determine how you can leverage this knowledge to gain the most value from their products and services. Many organisations have a deep and specialised knowledge of their particular industry.
When an organisation’s sales department negotiates pricing with customers, the team often has intimate industry and company knowledge that the customer likely does not. The same is true of an organisation’s suppliers. By developing a better understanding of your suppliers’ industries, you gain knowledge and leverage that can be useful in ensuring that your organisation is getting competitive pricing for the services provided.
When an organisation makes a collective effort to implement cost-optimisation strategies, the progress can get off to a great start, but the initial efforts and interest can start to wane over time. To maintain momentum, it’s imperative to keep staff motivated over the long run. One method of doing this is by incentivising cost-optimisation efforts, so staff continually experiences the value in finding ways to reign in expenses. For example, if an employee or department makes a suggestion that could result in a $10,000 annual savings, a reward such as gift cards, a small cash bonus, or additional hours added to vacation time could provide the drive for staff to take steps towards continuing a cost-sensitive mindset within your organisation. Incorporating incentives—and creating an environment where employees feel encouraged to suggest new cost reduction opportunities—can create a more cohesive, and organisation-wide effort towards continuing cost-optimisation efforts.
By taking a two-step approach to developing a larger culture of cost optimisation, both through staff participation and gaining knowledge of supplier industries to better understand underlying cost drivers, your organisation can find long term sustainable savings that can be reinvested in the company for years to come.