Strategy, Finance & Organization
SG&A efficiency for a Nordic airline
A Nordic airline asked Applied Value to identify and reduce administrative SG&A costs. AV presented a detailed plan for each function with timelines and financial targets to achieve 440 MSEK in savings.
A Nordic airlines’ management team tasked their organization with a cost reduction program. The client asked Applied Value to identify opportunities for administrative personnel and services cost reductions throughout the organization.
To better understand the company’s existing position, Applied Value conducted a current state mapping and historical analysis of administration costs and headcount. This assessment us in establishing clear targets for the airline based on performance benchmarks (functional cost, salaries, span of control, productivity etc.) and gap analysis of the company’s current and desired future state. We presented targets to managing functional leaders for successful implementation.
Applied Value provided function-by-function cost-saving initiatives that included timelines and financial targets. We also developed and shared a list of more than 60 cross-functional activities for review that supported savings of 440 MSEK.