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You could have given little more information about your product or service about your industry. What is your designation? You may hold your hand back while spending money but you are holding your hand back while typing also?
Cost-cutting is achieved through continuous improvement in your systems and processes. It is not just a day's job. It is achieved in years and that too with involvement of each and every staffs. Click the following link to read my reply to the past post on cost cutting:
Secondly, your leadership lies in curtailing the invisible costs as well. Most of the business leaders just concentrate on visible costs and ignore the invisible costs that are driving their profit in a big way.
Thirdly, your company should understand difference between "investment" and "expenditure". Many companies do not understand this difference and in the bargain pay hefty price.
Lastly, there is cost for every cost-cutting measure too. Therefore, while cutting costs, make sure that this cost of costing-cutting measure does not exceed the cost itself. Indirectly what I am saying never be penny wise and pound foolish.
Dinesh V Divekar
17th August 2013 From India, Bangalore
Dinesh is absolutely right.
First pl give MORE details of what you do, the company strength, sector, etc.
And I second Dinesh's advice about being "penny wise and pound foolish".
The general tendency of many companies in such situations is to focus on the OBVIOUS cost-centers--salaries, tour expenses, etc--failing to recognize that these cost-centers would be MORE expensive when the time for refilling comes again [a position would surely cost MORE than the present salary of the individual occupying the position--so the present 'apparent' gain would turn-out to be more costly later--and any restriction of essential tours would quite likely result in reduced sales, unless handled with utmost care & foresight].
It's always better to ensure the existing staff is retained than to fire them & then refill the positions later--usually such a step entails the staff taking a pay cut than to loose the job altogether [especially the senior employees].
Suggest give more details AND ALSO YOUR THOUGHTS & limitations--which will enable the members to take them into account while giving their suggestions--avoiding duplication of efforts.
18th August 2013 From India, Hyderabad
Believe me, there is no straight jacket solutions available.
It's not that someone can tell you do these 5 things and cost cutting is over.
Cost cutting is a bad thing in any way.
You need to look at cost control, which means ensuring that the costs are right / correct in relations to your product, industry and cost structure. For example, what works for a ssi will not work for a 15000 strong work force. At attempt to copy from another is a road to suicide.
From your approach to the topic, I would say you know very little about this.
My suggestion is to work with a consultant or a chartered accountant who can work out what cost cutting can be done without adversely affecting production, quality and other I portent parameters. However, ensure that the person doing it has a successful track record and understands your industry properly.
20th August 2013 From India, Mumbai