Cost Management

Cost Management

Kormac Insights

October 4, 2022

Cost Management
Rebalancing the margin tug-of-war

As the labor and supply cost rollercoaster continues, we are working with several clients to identify new management levers. Among them:

  • Increasing the frequency of cost reviews to ensure faster customer price adjustments and/or tying customer pricing to component market indices
  • Executing Value Analysis and Value Engineering efforts to drive down cost, including product reengineering
  • Implementing Lean and continuous improvement initiatives to drive productivity across facilities and reduce labor cost per unit
  • Improving procurement processes and strategies to minimize cost and maximize availability
  • Near-shoring and reshoring manufacturing and logistics footprints to create products closer to final customer demand and improve supply chain resiliency
  • Exploring renegotiation of facility leases, debt covenants and terms, etc.

Kormac’s Surgical Strike Methodology™ delivers the agility leading organizations need to meet their financial objectives.