COST MANAGEMENT

2016 was effectively the first fruitful year for AVB – Aço Verde do Brasil’s segment of steel production. With the beginning of the activities, the need to implement a methodology for monitoring the costs generated was clear. Therefore, routine weekly meetings were held for cost monitoring.

Our employees are key players for cost reduction, and internal communication must be reinforced so that the employees can join the cause. A good way of optimizing budget cuts is to get the whole team involved in the goal setting process. This strategy can be applied in a more efficient use of products and also in the hiring of services.

The company’s strategic planning must include not only the sales increase goals, but the cost reduction, which will be achieved by means of cost studies. This makes it possible to set new paths for reaching the desired rates.

The company Arbor Gestão is supporting AVB and AVB AF in their decision-making process by following the corporate results with modern monthly and weekly summary reports via ERP SAP, which primarily involves supply management, logistics and working hours management.