Upstream Advisory I Performance

Expense Reduction Strategies


Change Better. We support companies to structurally improve their business…

As we await for a vaccine amid the pandemic multiple companies across the globe are struggling to survive. What is your game plan given the current situation? What are you doing to reduce the expense levels of your organisation? Based on our experience, we share key expense reduction strategies.

1) Demand –focus on key performance indicators. Make what sells, minimize inventory, sell harder and match spend with demand.


2) Supply –re-negotiate your terms and conditions (e.g. price, payment term, logistics and freight expense, bonus) with suppliers now.


3) Work Process –focus on process efficiency and minimize inflexibility, variability and waste. Analyse and improve throughput times. Simplify reduce # of process steps and people involved.


4) Technology –focus on assets, align technology with requirements and drive digitalisation.


5) Organisation –focus on organisational agility. Analyse and reduce personnel expenses, materials and facilities. Each month establish a new project team to set new expense reductions.


6) Business –focus on business effectiveness (value add activities), rethink the future, your value proposition and minimize meetings. Set agenda and timeslot in advance. No agenda and/ or no minutes, refuse no meeting.

…with our head in the sky and feet in the mud