Cost Reduction as a Strategic Tool

In times of crisis, understand how cost reduction can be a sustainable strategy for your business

cost reduction

The last year was not easy for the Brazilian economy. Between political news and economic indices, different markets found themselves in a scenario of retraction and with not very encouraging prospects for the next year. In the midst of so many uncertainties, the inevitable question arises: how can companies overcome internal and external difficulties to grow again? How to readjust to a market scenario where the net margin of products and services is getting smaller and smaller? One of the alternatives that can be adopted by an organization is the cost reduction.

A cost reduction it is a fundamental activity that aims to make an organization's process flow less expensive and more assertive. Despite being a subject present in most of the conversations of Brazilian businessmen, little or nothing is done to effectively eliminate unnecessary costs. Organizational culture is a variable that may make it impossible to effectively implement actions aimed at reducing costs, as well as not identifying the main problems, lack of organization, etc.

The first step towards cost reduction

The first big step to implement a cost reduction program is to understand that such an important program needs to be aligned with organizational objectives. When the entrepreneur realizes that reducing costs is essential, the question arises: “Where should I start?”. This question is not easy to answer and, normally, there is an initial tendency to disconnect professionals from its structure without objectively analyzing the other operational variables. TATICCA has its own methodology for the cost reduction, helping its customers to identify ways to optimize their processes and, consequently, leverage their revenues and reduce their costs. In addition, it is worth noting that all the know-how of this knowledge is transferred to its customers, which differentiates it in the way it operates in the market. Here are some examples of how Taticca works:

Suppliers (Sourcing):

The process of purchasing products (direct and indirect) is essential within an organization and usually involves large amounts of money. In this sense, evaluating an organization's purchasing methodology, understanding how their respective orders are generated, negotiated and processed, is fundamental for cost reduction.


It doesn't matter if your workplace is a big factory or a small office. There will always be a chance to reduce infrastructure costs, such as electricity, water and sewage costs, through the reuse of water, the proper use of energy in peak periods and the eventual installation of equipment that aims to reduce the consumption of these expenses.

Service Outsourcing Analysis:

Your company can reduce its payroll costs by carefully evaluating services that can be outsourced.

Have questions about cost reduction? Get in touch with TATICCA through one of the available contact channels. We have specific tools for generating diagnoses aimed at reducing costs and increasing revenues.