Optimizing costs

In many companies the costs of materials and services represent more than 70% of the selling price of the product or service. Therefore, the price- and quantities-control is the key importance for achieving business success.

For the successful control it is necessary:

  • to establish a proper management of material business which includes appropriate structure of recording data in an information system
  • data structure should be as transparent and must allow access in both, prices and quantities of the elements used as specific items such as, number of covered kilometers, type of packaging etc.
  • by finding the optimal level of costs, a number of strategies is possible, depending mainly on the situation of sector in which business operates