COST REDUCTION ASSESSMENT
Scope of Services:
The starting point for any professional consulting assignment is a thorough assessment of the status quo. Our assessment usually covers the areas of Corporate Strategy & Structure, Sales & Distribution, Network Management, Finance, Maintenance & Engineering, Flight and Ground Operations and Human Resources focusing on cost savings potentials across these core areas of your organization.
In parallel to the investigation into the clients' organization, work processes and procedures, our team will conduct an external analysis (including a benchmarking exercise) that will enable identifying the relative position of your company within its competitive landscape.
Duration / Schedule:
Approx. 6 - 8 weeks for a medium sized airline, including:
- Preparation including data request, desktop research and travel preparation
- On-site assessment for 5 - 10 working days with several subject matter experts for interviews and investigation of existing working processes (depending on Client size)
- Off-site reporting with interaction of all involved subject matter experts supported by an external analysis / benchmarking effort
- On-site report delivery, presentation and discussion of final results
Deliverables:
Our findings are discussed with the relevant managers within the organization and will be documented in a final assessment report. Each recommendation will show information on the current status, the potential improvement measures, manpower and/or investment needs, measurement of impact as well as measurement of success. An overall risk assessment on the identified shortfalls and a draft implementation plan (highlighting time dependencies and a suggested order to leverage on some quick wins) complete this report. A summary presentation of the findings highlighting the quick wins will be held at the end of the project.
Why should you go for it?
The most advanced carriers of the world regularly initiate new cost reduction programs to harvest savings that are directly translating into bottom line gains. There is no guarantee on the return on investment of such an assessment. However, over 10 years of cost reduction experience with a variety of carriers allow to range the typically identified savings potential between 1- 5 per cent of the company's turnover. In previously conducted assessments of similar nature, the quick wins alone often easily cover the cost of investment of the entire exercise.