Cost Reduction & Control in Manufacturing Sector

10353 Words Feb 12th, 2012 42 Pages
Cost Reduction
There are right cost reduction techniques and there are wrong ones. Using the right strategies will result in a more efficient company spending. Using the wrong techniques will create a reduction of expenses required to maintain product quality and company value. It is a fine line sometimes, but a systematic approach can help managers avoid making serious mistakes in the rush to cut expenses.
Cost management strategies should be utilized as components of a larger objective to maintain maximum profitability. As such, cutting expenses will be just one part of a plan that focuses also on maximizing revenue.
Effective techniques will begin with the setting of goals and objectives. There can be many reasons why a company might
…show more content…
The Company has retained a third-party liquidator and real estate firm to assist in the process.
As part of the launch of the "Studio" concept stores and ongoing cost reduction efforts, the Company will realign the organization to reflect its reduced store base. As a result, the Company will eliminate 64 positions at its corporate headquarters, overseas offices and distribution center in Brooklyn Park, Minnesota.
Cost control boost for Zara owner
Spanish retail group Inditex has reported a 28% rise in nine-month profits, helped by improved control over costs. The group - which owns the Zara fashion store chain - recorded a net profit for the nine months to 31 October of 520.5m euros ($621m; £351m).
This was ahead of the average market expectation of 497m euros.
Revenues for the period rose 20% - again on a yearly basis - to reach 4.65bn euros, in line with forecasts.
The company's costs have risen in recent years alongside its fast-paced global expansion, but chief executive Pablo Isla vowed back in September that he would address the issue.
The firm said its fourth quarter, which includes the key Christmas trading period, had started in line with market expectations.

Standard Register Announces Cost Reduction Plan
DAYTON, Ohio --(Business Wire)-- Standard Register (NYSE:SR) today completed a restructuring action as part of an overall plan to reduce its