The important thing as always is to get into a ‘cost-cutting’ mode. The cost-cutting can be safely said that human resource has a very small contribution towards operating costs. Too often we have seen that firms tend to equate cost-cutting with retrenchment. The most familiar areas of cost reduction turned out to be logistics and wastage reduction. The Logistics cost is being brought down by re-negotiation with less-expensive third-party logistics and a renewed focus on quality systems and enterprise resource planning (ERP) process is helping reduce wastages.
For production companies, reducing excess inventory, as always, seems to be the key to bringing down operation cost and making the operation lean. The fast-moving stock-keeping units (SKUs) are still being pushed through the channel; slow-moving stock-keeping units are being shipped directly from the plants on an order-to-order basis. The Web and Bulk messages pushed through cellular networks are being looked upon as the innovative strategy of publicity. For ex, videoconferences and c-ports are becoming popular by the day as corporate start to wield down on excessive executive travels.
