In today’s volatile business environment, reducing operating costs and allocating budgets effectively are essential for survival and growth. GEP’s strategic cost management services help reduce expenses in low-impact categories and optimize spend in areas that drive sustainable growth.
Our programs can eliminate up to 35% of SG&A expenses within a year, freeing up cash to fuel growth and enhance shareholder ROI. By aligning costs to activities across the value chain, we help organizations identify non-productive spending and articulate better strategic plans.
Why Traditional Cost Management Falls Short
Conventional cost reduction approaches, such as “top slicing,” often deliver short-term results but are unsustainable due to:
- Focus on “big-ticket items” without understanding costs, activities, and outputs
- Fragmented, inconsistent implementation
- Lack of visibility into results to measure effectiveness
Strategies for Sustainable Savings and Long-Term Growth
GEP’s Approach
Our approach not only drives sustainable savings but also fosters a mindset shift by embedding cost ownership and disciplined execution into organizational culture. By leveraging Zero-Based Budgeting, alongside powerful benchmarking and in-depth cost analysis, GEP helps businesses question the necessity of every cost and focus on efficient execution.
Five Key Cost Reduction Levers:
- Demand Management: Reduce demand by questioning needs and limiting customization.
- Process Improvement: Standardize and optimize processes for greater efficiency.
- Automation: Digitize workflows to save time and reduce costs.
- Centralization: Reconfigure non-automated processes for better efficiency.
- Strategic Sourcing: Leverage onshore or offshore outsourcing for flexibility and savings.
Why Zero-Based Budgeting
Unlike traditional budgeting, ZBB allocates funds based on necessity and efficiency rather than historical trends. This approach enables organizations to channel resources toward high-value activities while eliminating non-productive dollars. With GEP’s ZBB methodology, companies gain greater spend visibility and control, driving sustainable savings while enhancing cost-effectiveness.
Why Choose GEP
GEP’s strategic cost management program helps organizations reduce SG&A by up to 35% while improving EBITDA. Our data-driven approach aligns costs to value chain activities, delivering unparalleled spend insights and fostering a cost-conscious culture. By embedding accountability, visibility, and disciplined execution into cost management processes, GEP helps businesses achieve a sustainable, efficient, and growth-focused future.
Key Capabilities
“GEP is uniquely positioned to advise clients, bringing its category and transformation expertise to help clients achieve their specific organizational, supply management and process efficiency objectives.”
ALM Intelligence
