վ worked in four phases: setting up the program, identifying costs, uncovering savings, and supporting the execution.
Setting Up the Program
վ began with a rapid-scan phase lasting just a few weeks. During this period, we confirmed the scope of the cost program and formed initial hypotheses. Our experts launched the request for essential data related to selling, general, and administrative (SG&A) expenses and other key areas of spending.
Identifying Costs
վ then worked with the beverage maker to diagnose its current spending and determine the potential scope of the prize. During this period, we deployed our proprietary tool to identify costs at the most specific, detailed level. Natural language processing, machine learning, and generative dialogue helped our experts reduce complexity while attaining high levels of accuracy.
We engaged 150 stakeholders across the organization (finance, HR, etc.) to collect data, validate the cost baseline, and articulate overall ambitions. Initial insights began to emerge. Peer benchmarking, for example, pointed to travel and entertainment marketing as the spending area with the greatest opportunity for removing costs.
We also began to roll out a zero-based budgeting methodology. Naming cost-category owners made it easier to hold individuals accountable for monitoring, tracking, and approving costs, as well as new efficiencies.