Back to all resources

Strategic Cost Reduction Checklist

A comprehensive checklist for strategic cost reduction... ✅

  • Lucidity
  • 1 min read

We've previously written our guide to strategic cost reduction, which is a process that can help any business regardless of their financial position. Now we're happy to provide you with a complete checklist of tips, advice and help, put together by a group of experienced FDs and CFOs! Download the full guide at the bottom of this page!

Here are some key activities covered:

Assuring Competitive Cost Structures

  • Independent Cost Benchmarking
  • Peer comparisons
  • Industry averages
  • Published accounts
  • Internal comparisons
  • Refinancing
  • Profitability reviews
  • Improving cost allocation / MI
  • Developing the Procurement function
  • Reviewing service levels

Exploiting Efficiencies

  • Automation opportunities / capex
  • Process opportunities
  • Rationalising operations
  • Outsource opportunities
  • Decommissioning marginal activities
  • Revenue completeness
  • Reviewing stock levels
  • Right first time measures
  • Analysing marketing payback

Review Overheads

  • List key spend items by type
  • Direct debits investigation
  • Consolidation of suppliers
  • Remove discretionary expenses
  • Reduction in frequency
  • Converting contractors to permanent
  • Remote working / service offices / less central locations
  • R&D Tax Credits
  • Employee benefits packages
  • Raising approval levels

Review Risk Arrangements

  • Hedging
  • Insurance
  • Self insurance
  • Credit control
  • Credit insurance

Quick Wins

  • Salary cuts / Furloughs
  • Deferred remuneration / Share alternatives
  • VAT / PAYE Delays
  • Business Rate Support & Grants
  • SSP Extensions
  • Ban on Evictions
  • Time to Pay
  • Self-Employed Support Scheme
  • Rent Holidays / Reductions

For more details download our guide below!

And remember our strategy software allows you to create and execute cost reduction strategies - you can sign up to our free trial today! 👍

Following our guide, this checklist provides over 50 ideas to work through to ensure you are on top of your cost reduction process.

In this eBook you’ll learn about:

  • Assuring Competitive Cost Structures
  • Exploiting Efficiencies
  • Review Overheads
  • Review Risk Arrangements
  • Quick Wins

Download the Strategic Cost Reduction Checklist

We’d like to send you useful content and updates from Lucidity. By submitting this form you are consenting to this and agreeing to our Privacy Policy. You can unsubscribe at anytime.

More resources you might like