Cost competitiveness is critical for manufacturing/service companies to survive in today’s increasingly competitive and borderless world. Leading international companies have staged a massive turnaround in operations driven by a reduction in direct material, variable conversion and quality costs by taking an integrated, cross-operational disciplines approach along the entire value chain. A few years ago, reduction in operating costs was ‘one’ of the many top management priorities. Today, however, it is ‘the’ most important priority with over 20 per cent annual cost savings not being considered unusual. Such is the challenge; TSMG faces, when we undertake exercises in cost reduction.

Integrated Cost Reduction (ICORE) is a methodology developed by TSMG that amplifies the effect of cost, quality and time improvements achieved by focusing on individual areas. It involves a simultaneous focus on the product and the value chain that creates it. It narrows in on levers like setting aspirational targets, design to cost, product commonality, supplier base optimization, lean value chain and content optimization. The method involves a diagnostic phase (to assess the potential), target setting phase (aspirational targets), idea generation and evaluation phase (involving client cross-functional teams, internal/external benchmarking) and syndication phase (signoffs from key stakeholders). An Implementation, Tracking and Control (ITaC) team is also put in place to ensure systematic and rigorous implementation.

TSMG has helped clients across sectors like automobile, engineering, telecom and chemicals to improve their competitive edge by reducing total cost of ownership, viz., material, processing, logistics, network, marketing and maintenance costs. Our cost reduction practice provides cutting edge business consulting solutions, made possible by a team of talented individuals with a sound background in engineering, manufacturing and services. The team is supported by a wealth of information, data and experience it has been able to gather by virtue of TSMG being one of the largest and oldest business consultants in this area. 

We have helped clients across industry sectors; viz, automotive, chemicals, engineering, telecom services, agro-chemical etc. reduce costs in the range of over 10 to 15 percent of their cost base.

ICORE also provides a potent Change Management Platform; achieved primarily through a cross functional approach and focus on quick wins, the program enables development of a pool of strong client side facilitators, who in turn ensure immediate delivery on program objectives and also form a leadership team for future change initiatives.