High Costs
Symptoms (What do you see…)
- Low margins.
- Not competitive in marketplace.
- Losing sales to competition.
- Unsuccessful outsourcing.
Causes (What you’ve got…)
- Inefficient purchasing.
- Poor cost system.
- Inappropriate marketing strategy.
- Bad forecasts.
- Inefficient operations.
- Poor planning process.
Solutions (What might work…)
- Review cost elements; identify highest cost elements.
- Stratify the cost and profit margins; fix or dump low margin items.
- Evaluate the cost system.
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