According to Gartner, the leading information technology research and advisory company, cost optimisation is a "business-focused, continuous discipline to drive spending and cost reduction, while maximizing business value. It includes:
1. Obtaining the best pricing and terms for all business purchases
2. Standardizing, simplifying and rationalizing platforms, applications, processes, and services
3. Automating and digitalizing IT and business operations".
A process will help to prioritize costs by considering not only the potential cost savings but also other values, such as time requirements, risks involved, investors’ relations and impact on customer experience (CX) management.
The effective optimisation process includes:
- Costs mapping
- Assessing risks
- Aligning with business goals and priorities
Risk assessment for vessels cost reduction programs shall be an integral part of ship operating cost reduction analysis. If the decision made regarding OPEX reduction is compromising safety, the company should understand the consequences and risk associated with such reduction measure.