Cost Management

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.