Restructuring Advisors

Rapid Cost Reduction

During times of economic uncertainty, companies typically have two fundamental choices; “hunker down” in a mode of survival or strengthen their strategic position. Experience shows that companies that outperformed their industry peers on the basis of return on invested capital (“ROIC”) adopted strategies to improve their position in the marketplace during challenging times. They adopted an “and” strategy not an “either/or” direction. They built sustainable value for their company and stakeholders, in part through implementing rapid cost reductions where their costs were not competitive. Restructuring Advisors developed the “Rapid Cost Reduction” (RCR) program to give organizations a pragmatic process to quickly shed non-value added costs and thus allow for long-term operational excellence.

The RCR process begins with a diagnostically thorough assessment that quantifies opportunities and identifies risks. Immediately thereafter, the rapid cash creation phase begins by focusing on high-value targets first, working with the supply chain, rationalizing collateral spending and streamlining redundant or non-value added activities. The second phase focuses on shaping sustainable processes, developing operating advantages and implementing new metrics.

The background of our team in operational improvement with deep industry knowledge allows us to know where to look for improvement. We hit the ground running and our hands-on approach drives short term results and creates long-term value for company owners.