Our cost reduction analysis helps you to identify cost drivers. The cost reduction analysis is based on three elements:

1. Analyzing the supply chain processes, costs and conditions;
2. Exploring the cost drivers, especially the administrative and manufacturing costs by inefficient workflows;
3. Analyzing the financial standing and potential.
These analysis are the base for the individual cost-cutting strategy. With the thorough analysis, you are always in the financial fit.

Cost reduction possibilities come in many forms, and focusing the company's efforts on the most value-yielding targets is often the biggest challenge for management. Rooting out non-value added costs begins with an understanding of the underlying cost structure of a company and its competition. The cost analysis can focus on many aspects of a company's operations, including manufacturing, operations, distribution and selling, marketing, and R & D.

We use tools such as thorough, quantitative analysis of the client company's overall financial position, competitive market dynamics, activity-based costing and cost position relative to best demonstrated industry benchmarks. We have the ability to help client company discover and correct meaningful cost inefficiencies quickly and often in the early stages of a broader case analysis.

Overhead optimization is the process of minimizing fixed costs that do not add real value to a firm's product or customer experience. And it is a significant part of our cost reduction analysis. As a company grows, its overhead often inflates in subtle ways. These costs may represent money well spent, creating market advantage, customer or employee satisfaction; but at times they are wasteful and can act to encumber the entire organization.

Identifying unnecessary overhead expenditures is only the first step in overhead optimization, as frequently the most difficult steps arise in the implementation stage.

We have extensive experience assisting clients in identifying the appropriate targets for overhead rationalization as well as helping them develop a workable implementation plan that does not harm the core capabilities of the firm. Applying various analytic tools, we work to develop a clear picture of a client firms' cost structure, as well as a comparison with those of similar companies, and help clients determine the direct impact of overhead expenditures on their products while identifying and acting on the highest-priority opportunities for immediate improvement.

Notably, global sourcing, outsourcing and offshore manufacturing have become an effective and efficient strategy to cut down costs and improve overall performance. Our wholly owned subsidiary, AGI International Sourcing & Marketing, offers a broad spectrum of professional services in global sourcing or outsourcing, offshore manufacturing, export development, and international marketing. For details, please go to: http://www.agiicorp.com/ism/

To inquire further about our Cost Reduction Analysis, email us at: companies@agiicorp.com