What is Cost Reduction Management?
Cost Reduction Management is the process used by profit and non-profit organizations to control the cost of doing business. It includes the management of cost of goods (if applicable), non-labor expenses and human resource payroll costs. National Cost Reduction Corporation specializes in and is focused on the non-labor expense portion of cost reduction. With years of success, National Cost Reduction Corporation evaluates and reduces non-labor expenses, while saving clients time so that they can focus on their mission and growth.
The proprietary Cost Reduction Process is the successful management and measuring of non-labor expenses leading to improved cash flow and increased bottom line. Proper implementation is imperative. Cost reduction management requires open communication and aggressive (always pleasant and persistent) negotiations with current and alternative suppliers. Cost reduction management must include assessment and evaluation, benchmarking to determine what was actually paid, and auditing to achieve maximum results. The process requires a well-defined timeline, along with consistency in communication and negotiating. It also requires knowledge of expense categories, suppliers and competitive market costs.
Cost reduction management is an ongoing process that should be formally reviewed every year, with specific time and action tasks and completion dates. Ideally, cost reduction management should become an integral part of your business plan and your culture with specific operational checkpoints. Cost reduction management must be communicated throughout an organization and be led by a senior officer such as the CFO or Executive Director. Creating and implementing an effective cost reduction management plan is critical for every profit and non-profit organization.
The Cost Curve
The majority of customers pay an average cost for their expenses. NCRC’s objective is to make sure you get the lowest cost. Our assessment, evaluation, benchmarking and audits help you reduce costs and achieve maximum savings.
“My organization had a very positive experience with NCRC. NCRC has the time, experience, and resources to determine if you are getting good value for your dollar. We are now enjoying savings, which allows us to use our money more effectively. I encourage anyone to at least take the first step in letting NCRC do a cost analysis. There’s no cost or obligation, so give it a try. They take your best interests to heart.”
— Susan B. Friend