Refocus. Reduce. Results.
Asia’s rise to global prominence is no fantasy. Halfway through the twentieth century, Asia accounted for only 20 percent of global GDP, but spearheaded by Japan and South Korea’s “economic miracles,” the rise of the Asian tiger economies of Southeast Asia and China’s subsequent economic boom, Asia now contributes 40 percent of global GDP.
According to the International Monetary Fund, Asia will deliver nearly two-thirds of global growth in the next few years. The IMF has even predicted that India will rise from seventh-largest to become the world’s third-largest economy as early as 2019, aided by its reformist government and its young population that is delivering a demographic dividend.
Looking into the crystal ball, by 2030 Asia’s top economies are expected to comprise China, India, Japan, Indonesia and South Korea.
Today there are great opportunities for Sri Lankan companies to be part of the global value chain as Sri Lanka is strategically located.
The fundamental key for companies from SMEs to large corporates, aiming to successfully grow in South Asia, will be the extent to which they are competitive, offering the right goods at the right price, whether this is in Asia or even globally. To achieve this, they need to remove wasteful activities from their businesses, improve the quality of their products, improve their health and safety levels ( particularly in manufacturing and construction) , and add value. By doing so, they will also increase the profitability, ROI and the overall performance management of their business.
To drive this profitable growth, these companies must take out non-value adding costs and reinvest savings into growth and sustainability initiatives that can improve competitiveness. By doing this, they can become not only win more clients and contracts, improve their productivity, but even become a leader in their sector.Through this re-alignment, they may also be able to more effectively for international supply chains.
Cost reduction DOES NOT MEAN across-the-board staff reductions and discretionary spending freezes. These types of cost reduction might be sustained for a short while, but eventually market pressures will lead to expansion of staff, increase in salaries, and restoration of marketing, travel, and training budgets.What is important is Cost reduction through reducing “waste” and becoming Lean, Agile and Efficient and the adoption of a cost-conscious culture by embracing spend visibility and cost category ownership.
In South Asia, many companies usenon-standardized internal processes that are inefficient and slow and that are difficult to outsource cost-efficiently. Often non-standardized processes require process-specific knowledge and skills, which means that as the business grows, it requires an increase staffing and costs.On the other hand, automated processes have a very low marginal cost and are highly scalable, but companies whose processes are manually intensive can’t scale up output without increasing staff which drives up their cost base.
AIE provides a range of cost reduction strategies which enable additional benefits to accrue throughout the business by eliminating waste, accelerating processes, improving health and safety, and utilizing resources effectively.
• Business Process Improvement Opportunities and Improvements
• Reduction of unnecessary ( wasteful) costs
• Reduction of Shutdowns, Turnarounds, and Outages
• Improvement in Supply Chain Management
• Improvements in Safety Performance
• Corrective & Preventive Action Management (CAPA)
• Quality Improvement
• Identification of critical KPIs for safety, speed and quality
With reduced cost in production of goods or services, the company can refocus budgeted resources on expanding operations or new market expansion. This supports the strategic alignment of goals as well as innovation and increasing market share. Business success relies on operational success, so AIE helps organizations take a strategic approach to reducing operations costs.