Upstream Advisory I Performance

Expense Reduction Strategies

Change Better. We support companies to structurally improve their business…

Amidst several crises companies with a proven track record are struggling to survive. What is your game plan given the current situation? What are you doing to reduce the expense levels of your organisation? Based on our experience, we share key expense reduction strategies.

Customer Demand

Focus on key performance indicators. Communicate and monitor performance with visual management. Make what sells. Minimize inventory. Sell harder. Match operational expense as a percentage of latest estimate sales. Align capex with requirements “fit for purpose”.


Re-negotiate your terms and conditions (e.g. price, payment term, logistics and freight expense, bonus) with suppliers now.

Way of Working

Focus on organisational agility, resource effectiveness (materials, people and time) and minimize waste (non value added activities). Eliminate every meeting without agenda and/ or minutes.


Analyse (a) reduce operational expense and (b) improve throughput time. Where you can simplify the way of working; reduce number of process steps and people involved.


Improve Employee of the Month

Establish a monthly contest with a fun factor to generate new expense reductions. Select the winner, implement the winning idea and reinvest the savings into the organization.  

…with our head in the sky and feet in the mud