cost-cutting

Vocabulary Word

Definition

'Cost-cutting' refers to measures that are implemented in order to reduce the amount of expenses or costs in a business or project.

Examples in Different Contexts

In supply chain management, cost-cutting strategies might involve negotiating better rates with suppliers or optimizing logistics. A supply chain manager might explain, 'By focusing on cost-cutting in our supply chain, we've been able to lower product costs without sacrificing quality.'

Practice Scenarios

Academics

Scenario:

The rising cost of education is a significant concern. How can we ensure that our students aren't burdened by excessive fees?

Response:

A possible cost-cutting measure could be the promotion of open-source textbooks to reduce students' financial burden.

Public-Policy

Scenario:

Processing applications for our new project appears to be a costly affair. Is there a more efficient, yet affordable, method we can adopt?

Response:

Digitalizing the application process could be a beneficial cost-cutting measure. It would reduce paperwork and speed up the process.