Cost Reduction

Reducing the cost of something usually refers to either decreasing the amount of money paid for it, or reducing the amount of resources used in its production or consumption.

When applied to business, procurement, and manufacturing, cost reduction can take many different forms. It might involve figuring out ways to use less raw material in production, improving manufacturing processes to reduce waste, or streamlining distribution to reduce transportation costs.

In any case, the goal is always to find ways to do more with less – that is, to produce the same quantity and quality of goods or services while using fewer resources.