Cost Reduction and Control Best Practices

Cost Reduction and Control Best Practices provides financial manages with no-nonsense, balanced, and practical strategies that are being targeted and used nationwide for controlling costs by thousands of companies in areas such as human resources, compensation, benefits, purchasing, outsourcing, use of consultants, taxes, and exports. These best practices are based on the trenches experience, research, proprietary databases, and consultants from the Institute of Management and Administration (IOMA) and other leading experts in their fields.
* Provides best practices and techniques for controlling costs within a company
* New chapters focus on outsourcing costs, downsizing, consultants' costs, and business tax costs
* Provides the latest strategies companies re using to control costs

Preface vii

Acknowledgments ix

1 Corporate Cost-Control Strategies 1

2 Human Resource Department Costs 59

3 Benefits Costs 100

4 Compensation Costs 150

5 401(k) Plan Costs 183

6 Training and Development Costs 213

7 Accounting Department Costs 247

8 Accounts Payable Costs 264

9 Credit and Collections Costs 283

10 Purchasing Costs 306

11 Inventory Costs 349

12 Export Costs 383

13 Outsourcing 422

14 Downsizing 456

15 Consultants’ Costs 491

16 Business Tax Costs 512

Index 529

IOMA (Institute of Management and Administration) publishes a broad range of high-quality information products for business professionals. Their products serve two purposes: to improve the efficiency of their subscribers and to enhance the financial performance of the firm or organization. Over 180,000 top business professionals rely on IOMA publications, special reports, and electronic services every month. If the past few years have taught financial managers anything, it's that there will always be changes and challenges in the economic environment. Boom or bust, bull or bear, upswing or downturn, more and more companies are realizing that an ongoing commitment to cost reduction and control is the best way to weather the inevitable turmoil in today's global economic climate. Being proactive and implementing practical cost control measures now can lessen the likelihood of having to take drastic actions later—actions that can imperil a corporation's direction and future.

First published in 2002, Cost Reduction and Control Best Practices quickly became a trusted resource for financial managers in companies large and small. Expanded and extensively updated, this edition includes the latest strategies companies are using to control costs, plus new chapters focusing on outsourcing costs, downsizing, consultants' costs, and business tax costs. It gives controllers, managers, and financial managers informed guidance on the most successful cost control strategies across the entire spectrum of business functions.

Within this book, the Institute of Management and Administration (IOMA) presents the best practices, techniques, and proven ideas to help control cost. It helps financial managers make decisions using a scientific method rather than relying on intuition or the latest management fad. Detailed case studies show how other companies have successfully cut or controlled costs in various areas of administration and operations.

The official IOMA source for tips, techniques, strategies, and best practices in corporate cost-cutting

This book is a totally updated, authoritative compilation of the best strategies and techniques being used to control costs in various industries and across virtually all business functions. Each chapter focuses on a different department or function and includes the latest best practices and dozens of practical tips and tactics from managers around the country. In-depth case studies and examples show how diverse cost reduction and control measures work in the real world.

The book includes specific techniques on cutting costs in the following areas:

• Human Resources
• Benefits
• Compensation
• 401(k) Plan
• Training and Development
• Accounting
• Accounts Payable
• Credit and Collections
• Purchasing
• Inventory
• Export Costs
• Outsourcing
• Downsizing
• Consultants
• Business Tax

Based on vast research by the Institute of Management and Administration, the premier resource for management professionals, this guide is ideal for managers and financial officers who need to implement cost reduction measures promptly, small business owners who need fresh ideas for cutting costs, and all executives who realize that ongoing cost control is vital for resiliency and competitiveness in fluctuating economic environments. Today, cost control must be integrated into corporate culture in order to preserve that corporate culture.