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Cost Control and Forecast Accuracy in Heavy Industry

Context

An organisation in the heavy industry sector struggled with cost control and forecasting accuracy, with month-end cash positions deviating by up to 15% from forecasts. There was a noticeable disconnect between the finance and operations teams, contributing to the issue.

Action

A thorough analysis was conducted to identify operational bottlenecks, pinpointing issues related to team motivation and accountabilities. We recognized the need for a better integration between finance and operations teams. Our approach included the implementation of performance management measures to define and action accountabilities for cost management. We updated systems and established cost review meetings using our specialized toolkit for maximum impact. The initiatives were reinforced with targeted training on roles, responsibilities, and target setting, supported by daily reviews and clear accountabilities, all facilitated with tools from our collection. Transition support was provided through one-on-one training and coaching.

Outcome

Within three months, the organisation significantly improved its cost variation to forecast, reducing it to ±5% from over 15%. The team also restructured several contracts, achieving an additional 5% in bottom-line savings and significantly reducing operational variability.

These case studies demonstrate Syndeom’s capability to deliver tailored solutions that address specific operational challenges, resulting in improved efficiency, reduced costs, and enhanced organisational performance.

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Our methodology is grounded in deep collaboration and partnership. By integrating with your team, we work hand-in-hand with you to grasp the nuances of your challenges and objectives. Through a process of strategic alignment and innovative problem-solving, we assist you in unlocking value at every level of your organisation. It’s this partnership model that enables us to craft bespoke solutions, perfectly aligned with your vision for the future, and dedicated to delivering enduring outcomes and experiences.