Cost efficiency and asset optimization

Challenges

Many businesses are concerned about their ability to generate the funds needed for growth, especially given the mounting losses in the financial sector, tighter capital markets, and the ongoing economic downturn. But often companies have large amounts of untapped cash stored in underproductive assets. As a result, organizations are wrestling with questions such these:

• How can we find and correct the root causes of excess working capital?
• What techniques can improve how we manage inventory, payables, and receivables?
• How can we improve forecast accuracy and product design to minimize inventory levels?
• Which processes can we rethink or simplify to eliminate costs?
• What facilities could we consolidate to minimize funds tied up in fixed assets?

DC GROUP Competencies

We look beyond cost management and focus on maximizing the income-generating potential of employed capital. Our approach seeks to optimize the productivity of both current and fixed assets, thereby releasing cash that can be put to more-strategic use.
Our primary areas of focus include five topics:

• Working Capital Management. We collaborate with clients to rethink processes that are the root causes of excess working capital. Our methods can reduce buffer stock, decrease replenishment times from suppliers, and optimize cash collection and payment cycles.
• Value-Based Cost Reduction. We help companies cut costs by eliminating unnecessary or redundant activities and streamlining those that are necessary.
• Process Redesign. We measure factors such as time, cost, errors, and volume to identify inefficient processes and redesign them for major cost savings and performance improvement.
• Rapid Cash Generation. We help clients reduce costs by analyzing their cost structures, defining clear cost-cutting targets, and prioritizing cash-generating activities.
• Fixed Asset Optimization. Focusing on capital-expenditure allocation processes, we help identify unnecessary assets and associated costs.

In each case, we create client-specific solutions, drawing on our strategic perspective, global expertise, and proven approach to cost reduction.