While the September 2024 CPI results showed signs that inflation may be easing; companies should continue proactively implementing cost-saving measures.
Stay Vigilant: Whilst inflation shows signs of easing; companies should continue implementing cost-saving measures to maintain profitability.
Supply Chain Focus: Tariff risks under President-elect Trump may directly or indirectly affect Australia and Australian companies. Mitigate supply chain vulnerabilities by diversifying suppliers and investing in technology. Have a Plan B. Consider using tools such as scenario planning to understand supply chain vulnerabilities.
Pricing Strategies: Regular price reviews are crucial. Avoid revising prices only once a year; as this exposes companies to sudden cost increases.
Cost Control: Leverage the 80/20 rule by targeting high-impact areas for cost reduction. Don't overlook indirect or tail-end expenses; which can be substantial. If internal resources are limited; consider outsourcing to third-party experts who can work on a contingency basis.
Wage Management: In the current high-cost-of-living environment; wage demands are unlikely to ease. Consider other non-monitory benefits that may appeal to employees; and plan accordingly.
Companies should continue adopting a proactive cost management approach to manage uncertainties. Scenario planning is one helpful tool for understanding vulnerabilities and planning options.
„Dacă aveți nelămuriri cu privire la anumite aspecte ale gestionării costurilor, nu ezitați să ne contactați pentru o discuție. Majoritatea companiilor știu că pot realiza economii în cadrul structurii lor de costuri, dar, de multe ori, nu știu cum să le pună în practică sau consideră că acest proces este prea consumator de timp.”
Grant Morrow
Consultant principal
+61 415 203 575
gmorrow@eragroup.com
