What is Cost Minimization?
Cost minimization is the process of reducing expenditures on unnecessary or inefficient processes. These changes in spending can be slight or drastic, but any level of reduction in costs will likely have a dramatic effect on maximizing profits. Cost minimization strategy and efforts can occur in any area of a business including manufacturing, freight and packaging, finance and accounting, human resources, legal, marketing, direct selling, and more. The goal of cost minimization strategy is to identify the area(s) in which a business can effectively reduce costs that will have the most beneficial effect on maximizing profits.
Why do I need to minimize costs?
Cost minimization is a necessary condition for profit maximization in competitive markets. By analyzing operations and other areas of a business and stripping down to the most efficient, “lean and mean” processes, organizations are able to identify problem areas, change unproductive methods, streamline procedures and ultimately reduce costs significantly.
Why Choose Competitive Analytics to Provide Cost Minimization?