Elias
Expert
Experienced strategy consultant, now running own consulting business
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Creative Methods to cut costs

Someone asked on Nov 13, 2018 - 3 answers

Hi Everyone,

This a very broad question, but could you help me out with some more creative ideas than the usual on how a business can cut costs? Of course, it depends on the industry and a hundred other things, but if you have anything interesting for whatever industry I would take it!

Many many thanks!

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Elias
Expert
replied on Nov 13, 2018
Experienced strategy consultant, now running own consulting business

Spitballing:

  • Instead of buying (expensive) office chairs and tables, buy them at IKEA and have your employees assemble them (Amazon did that).
  • Use AirBnB instead of hotels for business travel
  • Use open source software
  • Use motion detectors in office lamps and meeting rooms to automatically turn of lights (Deutsche Telekom does that)
  • Use heat from data center to heat buildings
  • Set default printer settings to grayscale and double-sided print
  • Use tap water filtration/cooling machine instead of traditional water cooler bottles (not a good idea if your business is in Flint, though)
  • Get people public transport tickets and company bikes instead of company cars
  • MOST EFFECTIVE: Treat your people well to lower attrition and reduce search, hiring and onboarding costs!
Vlad replied on Nov 13, 2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

Your question is so broad and specific at the same time that I believe that none of the answers would really help you. But here are some ideas from the real projects:

  • Put asphalt instead of grass lawns on the huge factory and cut related employees
  • Turn-off the computers at the retail store at night to save electricity
  • Put the rugs at the hospital to cut the cleaning staff by 30%

Good luck!

Paul
Expert
replied on Nov 13, 2018

One real-world example is to stop using offices and turn the company into a remote company. My friend's company did just this, moving from London to Morroco (see link: https://www.telegraph.co.uk/finance/yourbusiness/11295288/Want-to-build-a-cool-start-up-Move-to-Morocco.html).

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AirService

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Your client AirService is the service provider for a number of airports. The management realized a decrease in profits that is linked to increasing costs. How would you help them? Open whole case