United Kingdom

Cost Optimisation: Getting more out of your business 

Achieving a balance between where you spend and where you save is crucially important in business - especially in these tough economic times. Businesses need to think about their cost base as an investment and continually review whether the 'investment' is being made in the right areas.

At KPMG, we help companies to implement significant and sustainable cost reductions, either driving savings to the bottom line or redeploying the savings in under-invested activities to add value.


We draw on our extensive cross-functional experience to look at the whole enterprise to help you achieve targeted savings in areas such as operations, supply chain, procurement, IT, HR or finance. Our Tax specialists can also advise you on how to make your supply chain operate more tax efficiently or how you can reduce your indirect tax bill.


What's on your mind?


  • Cash management has a new prominence on corporate agendas. During the economic downturn and beyond, it will, according to 53 percent of companies surveyed by CFO Europe Research Services, become a permanent and prominent feature of day-to-day business
  • Declining sales income and escalating costs as well as supply chain instability
  • Creating sustainable cost-cutting strategies
    Rapidly reducing costs in situations of corporate stress or distress
  • Making staff accountable for cost-management initiatives.


Bringing you peace of mind


Knee-jerk reactions to cost cutting are normal for companies in financial difficulty - they frequently trim known areas of excess fat quickly or put in place temporary spending freezes in "discretionary” areas . Cost-cutting is not, however, a short-term fad. A survey by CFO Europe Research Services has found that companies are now planning additional cuts of up to 25 percent in the next couple of years, as they seek to make sure their cost bases are aligned to the new reality and their market ambitions.


KPMG brings together the right skills and experience to help you optimise the costs in your business and achieve lasting and strategic benefits. We help by:


  • Taking on the role of 'internal investor', objectively scrutinising where the organisation is bloated or starved of cash and identifying appropriate actions
  • Embedding a cost management culture across the business and creating incentives for eliminating waste
  • Simplifying and streamlining processes to reduce costs and free-up time for value-adding activities
  • Identifying performance gaps and working with management to deliver lasting change.


What's in it for you?


Cost-optimisation is a strategic response for any client that needs to make significant changes to its cost base. It helps clients to recognise where cuts can deliver savings and where investment is needed to help the business function profitably and efficiently.


Managed properly, cost optimisation can:


  • Help clients achieve savings of anywhere between 10 - 40 percent of the addressable spend
  • Create a plan and strategy for permanently lowering levels of cost in the organisation
  • Provide opportunities to recycle funding from cost initiatives to generate cash for growth
  • Make staff accountable for cost-management initiatives.




We recognise that it can be very difficult to step back and take an objective view of the company you manage and the people you employ. KPMG delivers that independent and impartial examination of the state of health of your company. We can:


  • Analyse your company's economics and identify cost savings opportunities
  • Deliver rapid results within weeks of engagement
  • Introduce KPMG specialists in Tax, HR, IT, procurement, or supply chain to challenge your business and identify opportunities for lasting efficiencies.