Cost and Value Optimisation and Benchmarking

At a time of economic challenges and financial constraints, public and private sector organisations need to conserve resources and optimise the use of these resources, to drive value for their stakeholders.

Public sector organisations in particular are facing a series of external cost and efficiency pressures whilst dealing with increasing customer/citizen demands, which they are struggling to adapt to.

Cost and value optimisation is therefore a key priority in today’s infrastructure landscape. At KPMG, we have many tools available and extensive experience in helping clients with cost and value optimisation.

Gareth Davies

Partner, IAG Transport

KPMG in the UK

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Who We Help

We work with organisations in the Infrastructure, Government and Healthcare sectors (both public and private) across a range of situations from strategic growth through to more distressed situations requiring rapid interventions to preserve and increase shareholder/ stakeholder value.

What we do

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Value-Cost Optimisation

We help clients optimise their cost base and increase value to stakeholders – this does not mean that it is simply about taking cost out. We think of it in terms of Cost and Value Optimisation. These are not mutually exclusive: it is about creating the ability to do more with the same level of resource – removing wasteful activity or spend, and appropriately aligning people, assets and capital to the organisation’s key objectives in a sustainable way, as well as driving top line revenue growth.

We apply a combination of both a top down and bottom-up perspective, to ensure maximum value is derived, and to achieve maximum buy in across all stakeholders. The top-down perspective includes targeting high cost areas, strengthening strategic value drivers, identifying and eliminating waste, and challenging systemic areas of inefficiency and low productivity. The bottom-up perspective includes analysing the core component parts of the organisation, determining the key drivers of activity and cost, and working collaboratively with teams across the entity to develop initiatives to reduce cost and drive value.

There are a range of tools and assets that we use to deploy short, medium and long term interventions across the front, middle and back office.

Our clients value our expertise and input because we are evidence based, collaborative, and consistently deliver return on investment of 5-10x.

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Benchmarking

We benchmark cost and performance of infrastructure programmes and assets over their lifecycle to inform ongoing discussions with stakeholders for those assets - whether in terms of pricing and policy calibration or performance assessment.