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Old 11-14-2012, 09:14 PM
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In our organization, we count only year-over-year cost reduction as creditable saving and it goes against our annual saving objective. This is very challenging when there is high inflation. However, it serves very well to the financially conservative corporate culture.

The other area is usage reduction by improving the operation efficiency. For example, re-purposing the software licenses from retired employees to new hires; adjusting mobile voice/data package based on employees' usage; requesting extended consulting services for no additional charges,etc.

Cost avoidance is reported but is not counted toward our achievement, for example, the discount from vendor listed prices, expected outsourcing project implemented by internal resources, etc.
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