Direct Cost Control

The largest proportion of costs for many companies are ‘direct’ costs, including either products, production or labor. Established sourcing relationships, ingrained operational planning and well-worn manufacturing techniques have often evolved organically as a business grows, leading product design and engineering decisions to become deeply layered and complex.

In other cases, supply chains have become intricate and unnecessarily diverse, with logistics operations and networks trapping inventory and absorbing working capital. Maximizing gross margin requires the identification of these hidden opportunities, as well as the development and rapid execution of initiatives that lower cost, while maintaining or improving quality and customer service, and releasing cash into operations.

Since 1983, Alvarez & Marsal has drawn upon the operational heritage of its senior staff, who bring deep insight to stressed and challenged companies in implementing fundamental business change. Our firm successfully brings that very same approach to helping underperforming organizations to boost profitability.

Our professionals, who possess years of direct line management and operating experience, create a sense of urgency, challenging and redirecting companies toward high-impact initiatives that deliver accelerated reductions in direct costs and associated improvements in margins.

Our Direct Cost Control services include:

Operations and Process Optimization
Logistics Planning
Production Planning and Process
Labor Cost Management
Sourcing and Supplier Management
Quality Improvement
Service and Warranty Optimization
Materials Cost Reduction
Product Design Optimization
Supply and Outbound Logistics
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Alvarez & Marsal

Direct Cost Control

Direct Cost Control

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