The effective use of digital twin technology can help UK manufacturers take back control of costs through faster, more agile decision making.
Understanding and optimising costs within a business is essential for long-term profitability, but it should not impede growth. Leveraging careful analysis and industry expertise, we use a data-driven approach to deliver sustainable internal savings that ensure lifetime benefits for our clients’ businesses.
When delivering internal cost reduction, we focus on five key areas across a business.
Spend analytics of 3rd party supply
Through our digital platform, we develop deep data-driven insights at both the macro and micro level which are used to inform supplier conversations and leverage benefits from the supply base. In addition, we embed this capability into clients long-term through our Intelligent Analytics tools.
We are also able to analyse spend data associated with individual projects to optimise sourcing decisions. This analysis allows for a true evaluation of go/no go decisions based on spend to go data vs implementation cost.
A high performing organisation effectively designs its structures, processes, and technology solutions to achieve enhanced business performance. By taking an insight-led approach, we can undertake a detailed evaluation of our clients’ workforce, structure, processes, and technology – and can remove low-value activities and utilise technology solutions to enhance productivity. In addition, through data analysis we develop a fact-based view of a client’s operational footprint and costs to advise on the optimal locations for new facilities or to relocate existing ones, creating an organisation footprint that delivers maximum return-on-investment.
Effective controls are essential for any business to remain competitive long-term. We support our clients in developing procedures and process to monitor and manage cost, while also defining the controls to drive efficient cost management, performance improvements and growth. We work alongside our clients to develop and drive a culture of responsibility, identifying where accountability lies and then implementing the relevant policies and procedures to create an effective and resilient business.
Total cost ownership
Cost of ownership provides an understanding of an asset’s whole lifecycle cost, revealing hidden expenses within different stages, rather than simply its purchase price, to support informed decision-making on future procurement. By utilising total cost of ownership for internal facing functions and activities, our clients benefit from a more holistic approach to purchasing and management of internal costs, providing a clearer long-term view from which to make buying decisions that reduce costs without impacting quality.
Make vs Buy
A key decision most companies need to make is whether they should produce in-house. Make Vs Buy analysis is conducted at a strategic and operational level and helps businesses make a strategic choice between manufacturing in-house or buying from an external supplier. In some cases, the results of this analysis will demonstrate that procuring parts or whole items/products is more beneficial for the business, which in turn can reduce internal costs.
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The benefits of best practice
Our consulting expertise combined with our digital capability ensure that the internal cost reduction procedures we put in place deliver sustainable and measurable outcomes for clients.
More efficient operational performance
With a streamlined structure in place and low-value, time-costly activities removed, our clients can deliver faster, more cost-effective products and services for their customers.
Increased market competitiveness
Improved efficiency in service delivery means our clients are more competitive, gaining more market share ahead of rival brands.
Improved business resilience
Reducing inefficiencies and wastage ensures our clients are in a stronger position should economic or market challenges arise.
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Analysis of ORR figures show staff represent 35% of the costs of running the UK’s railways. Implementing efficient staffing strategies is key to unlocking cost savings and securing a sustainable future for the industry.