Sustainable cost transformation
Shift to win.
Elevate your level of cost competitiveness by implementing proven planning, control frameworks, and deep behavioural change that sustains realized value.
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It’s a new world
Rapid change is sweeping through most business environments and accelerating competition. Trends from digitalization and AI to (de-)globalization and crisis-related economic disruption are putting pressure on conventional models, leading to significant new challenges for Canadian business leaders. Balancing discipline in a proactive cost management system with agility and resilience can make a significant difference during uncertain times.
When to Shift with Deloitte?
Our sustainable cost transformation team across Canada works hand-in-glove with senior management to review and sustainably eliminate extraneous costs from across business units and the entire enterprise, so you can achieve your business objectives. Whether your organization is looking to profitably grow through acquisitions, expand new product or service offerings, enter new markets, or invest in innovative technology, transforming your cost base sustainably will set you up for success. Becoming a resilient organization that is focused on productive assets and spend will ensure that your organization thrives in an uncertain environment.
The Shift by Deloitte difference
We typically see and support three levels of sustainable cost transformation:
Incremental change
Possible initiatives
- Reduce contractor spend (consumption)
- Renegotiate vendor contracts
- Eliminate obsolete programs
- Remove discretionary spend
- Execute a smart recruitment freeze
- Implement operation management systems
Structural change
Possible initiatives
- Implement zero-based budgeting (ZBB)
- Consolidate sourcing activities
- Set up asset consolidation
- Establish robotic process automation for repetitive tasks
- Delayer or reduce team sizes
- Implement continual improvement programs
Disruptive move
Possible initiatives
- Downsize strategically
- Integrate supply chain processes
- Implement new technology platforms
- Shift operating models
- Optimize shared service operations
- Rationalize IT platforms
We can generate actionable insights faster than the competition—helping you realize quick deliberate savings and ensuring that the value can be sustained. We work collaboratively and co-create solutions with you, rather than impose ideas upon you. Together, we are prepared to partake on this journey with you.
SCT in action
Our focus is on removing all the bad costs and enabling investments in areas of future growth.
Cost reduction and EBITDA improvement
Vertically integrated full-serve produce company
Deloitte worked with a family-owned business to conduct an analytics and data-driven enterprise-wide cost assessment to identify financial and operational performance improvement opportunities.
Our assessment was needed to help position the client for growth, as the industry had shifted from commodity-focused products to value-adds.
EBTIDA improvements of 20% across the shop floor, logistics, sales, marketing, procurement, customer, and SKU profitability were realized.
Organizational design and SG&A cost reduction
Supplier and marketer of fuel products
Deloitte was engaged by an oil and gas company to assist with realizing synergies that were not yet captured by multiple acquisitions and to identify additional SG&A cost savings to align the business with other industry leaders.
Leveraging benchmarks, analytics, process-mapping, and global-subject matter specialists, we assisted the management in realizing synergies and cost savings of $80 million in 18 months.
DC design & automation
Global retail clothing brand
Deloitte was engaged to determine the right distribution centre design and automation strategy.
We visited the existing distribution centre and used data analytics to understand the existing operations and to prepare an RFI for automation suppliers. With the supplier RFP responses, our engineers evaluated the viability and cost-effectiveness of each response.
We then developed an automation strategy that would meet the strategy and growth expectations of the client for the next five years and supported the client through the procurement and implementation phases.
Your advantage: A more competitive cost position, sustainable value creation, and mature cost-competitive culture that’s focused on productive assets and spend.
Working Capital and Liquidity Advisory
Creating and accelerating sustainable value through working capital improvements and a cash-focused culture.
How reducing costs through a sustainable cost transformation can set you up for long-term business success
While cutting costs may save a company from an acute situation, it is by definition a short-term fix. It doesn’t allow businesses to transform their operations in the ways they need to thrive. Learn more on sustainable cost transformation.
The path to unlocking evergreen value
It’s time to look beyond cost reduction and begin accelerating supply chain, finance, and HR operations to create evergreen value.
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