Why are conventional cost-cutting measures playing financial risks in the long run?
This has long been dealt with by assigning spend management with random blanket savings targets that can bring down Global Cost Optimization in the short-run but also in the long-run they pose considerable risks. Similarly, opportunities of reduction are not usually noticed. Our findings and first hand experience with clients lead us to the opinion that organizations take up at least 10-15% of their current spend base in the form of cost savings by seeking opportunities at the tactical level whilst remaining on the path to an integrated spend management strategy.
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