COVID-19 has decimated global businesses. The world will never be the same from a economic and business context. Business models will have to be rewritten, and many businesses will not survive. Some new ones will get created. How long the recovery path will be is anybody’s guess.
In this current context where revenue is not predictable there is no choice but to drastically cut cost. As one CEO said you need to act like only the paranoid survive. Cedar has well-proven track record of strategically & surgically reducing cost in 90 days or less using the Balanced Scorecard framework across the business model:
- Using Analytics to determine the most profitable customers to retain and grow, and customers to re-price or exit.
- Product prioritization & SKU rationalization. Determine which products generate material revenue or profit, and eliminate most other products using Cedar’s SKU rationalization models.
- Channel rationalization. Rightsizing sales organization with Cedar’s sales productivity analytics and shutting down of brick-and-mortar outlets based on financials & catchment area analytics.
- Breakthrough online channel build. Building & executing an online strategy for your own website/marketplaces, online product & pricing strategy including discounting, fulfillment and technology models.
- Logistics & Supply Chain. Cleaning up the supply chain. Vendor consolidation, reduction of distribution brick-and-mortar, automating warehouses, minimal staff with a significant improvement in inventory turns.
- Buy versus Build. What to continue to manufacture, and what to outsource. Optimization of mfg. assets – line consolidation, shift changes, automation recommendation, reduction of staff strength and selective use of PLIs. Getting as close to 100% OTIF as possible in the current situation.
- Headcount Reduction. 30%+ reduction of headcount based on restructuring, delayering of organization, consolidation of activities & roles, and humane exit of non-performers & excess headcount.
- Technology Strategy. Implement a digital future enterprise wide. A technology strategy that minimizes fixed capex in hardware & software, use of new tech plug-ins, and converts most of your transactions to digital and straight through processing.
Cedar can help take-out 30%+ of the cost in most cases within 90 days or less using an AGILE project management framework which outputs results on a weekly basis. Most of our consultants are AGILE certified and Scrum masters.
Let us help you so that you can live to fight another day.