Strategic Cost Reduction and Financial Transformation

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Strategic Cost Reduction and Financial Transformation

Client Overview

An energy company providing oil and gas storage, processing, supply, logistics and transportation services.

Deployed Capabilities

Regulatory & Compliance
Transformation
Supply Chain
Financial Advisory

$10MM Savings

We exceeded our client’s goal of $10 million in savings within a 60-day period.

170% Savings Goal Realized

Our client achieved savings equaling 170% of their initial goal for the current year reductions.

190% Target Achievement

190% of our client’s cost reduction targets were achieved freeing them to focus on their core operations and growth strategy.

The
Challenge

In the wake of declining commodity prices that drastically impacted revenues, our client faced a pressing need for swift cost reduction. Their goal was an immediate reduction of $10 million within a 60-day period for the current fiscal year and a subsequent decrease of an additional $10 million on a run-rate basis within the following 90 days. In essence, the task at hand was to implement a strategic financial transformation that could bolster their financial resilience swiftly.

The
Custom 
Solution

In response to this challenge, we developed a comprehensive program focusing on two primary areas: adjusting fixed costs and scrutinizing third-party spend. The program also incorporated a flash report system for cost control, aimed at ensuring real-time monitoring and effectiveness of cost reduction measures. Our unique multi-disciplinary approach was critical to this strategy’s success. Leveraging cross-functional expertise from diverse domains including technology, business operations, supply chain, internal controls, and financial reporting, we created a robust framework to tackle the financial challenge. This synergy between digital transformation and financial strategy facilitated a holistic response to the cost reduction objective.

The
Impactful
Results

The strategic financial transformation we implemented exceeded expectations. It delivered an impressive 170% of the initial goal for the current year reductions. But the success didn’t stop there. Overall, we achieved approximately 190% of the desired cost reduction targets. This significantly reduced the company’s financial pressure, allowing them to focus on their core operations and growth strategy. This case demonstrates our strengths in financial and digital transformation. We used our multi-disciplinary approach to turn a pressing financial challenge into a strategic advantage, exceeding the set targets and reinforcing our client’s financial stability in a challenging market scenario.

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