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Cost Reduction
Executives in operations areas are tasked with the same goal year after year — reduce costs by 5-10% while maintaining or improving quality and customer experience. Merced Systems
offers a unified set of software solutions and consulting offerings to produce real, bottom-line results.
Key Challenges
- Disaggregated and irreconcilable performance data
means cost takeout opportunities are missed
- Difficulty balancing unit cost reduction with parallel metrics of quality, service, and customer experience
- Limited visibility to critical performance data on the front-line making it difficult to drive behavior change, individual accountability, and self-correction
- No employee coaching and development tools to drive true accountability and improved performance
- Manual error-prone incentives leads to costly administrative time and possible overpayment
Overcoming Cost Reduction Challenges with Performance Management
Establishing a baseline for measuring future cost reduction is essential to the long term success of an operation. Merced Systems balances an organization's unit cost metrics with quality and service metrics to ensure all aspects of the business are working in parallel. Merced Systems identifies opportunities to reduce unit cost through process optimization and leverages Merced Performance Suite and Merced Incentive Management to empower every employee with highly personalized performance information and establish before and after business impact.
Merced's Operations Consulting team has specific expertise in driving cost reduction rapidly.
ROI
- Business cases typically result in a minimum 2:1 return based on direct labor expense
- Business cases are typically developed and customized during a two week assessment period prior to the engagement
- The average impact on an operation is a 26% reduction of operational costs while quality and customer experience stay the same or improve.
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