Cost Reduction

30Aug
Nenad J. 2 Comments

Reduce costs and improve financial situation.


Cost reduction is the process used by organisations aiming to reduce their costs and increase their profits, or to accommodate reduced income. Depending on a company’s services or products, the strategies can vary. Every decision in the product development process affects cost: design is typically considered to account for 70–80% of the final cost of a project such as an engineering project or the construction of a building. In the public sector, cost reduction programs can be used where income is reduced or to reduce debt levels.


For middle and large scale companies, the cost reduction procedures are mostly executed within inventory management life cycle. It is the task of understanding the stock mix of a company and the handling of the different demands placed on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. Inventory management is important for every other business enterprise.


Inventory management software is a tool to help efficiently manage stock. While the capabilities of applications vary, most inventory management applications give organizations a structured method of accounting for all incoming and outgoing inventory within their facilities. Organizations may save costs associated with manual inventory counts, administrative errors and reductions in inventory stock-outs.

@Subnetservice performing cost reduction activities is one of the most valuable operational improvement for all customers. We design automated cycle-count procedures that help our clients to stop wasting money.

A good inventory management system will be able to list all stock options with a size colour matrix as well as give live reports on best or worst sellers, supply chain and sales staff. Many large organizations use sophisticated ERP systems such as Oracle EBS and SAP for inventory management. Stock modules in these ERP systems provide many of the options needed to manage inventory.

Micro-Dashboarder is a sophisticated web reporting platform that can attach to any ERP or CRM system. Using Artificial Intelligence and Machine Learning algorithms, we utilize client's data sources to produce interactive reporting dashboards with analytical and forecasting models that will provide insights and drive business decisions in positive direction.

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