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Supplier cost documents, a calculator and material samples, illustrating cost reduction

Cost reduction plan template

A plan that turns a cost target into named initiatives, owners and dates.

A cost reduction plan sets out how a business will lower its costs: the target, where the savings will come from, who will deliver them and by when. Without a plan, cost cutting tends to fall on whatever is easiest to stop rather than what matters most.

This template links a target to initiatives by spend category, with owners, dates and status. It is designed to sit alongside our cost savings tracker, which records the savings as they are delivered.

Free to download. Available as Excel and Word.

What's included

  • Objectives and target summary
  • Baseline cost by category
  • Initiative list with owner and date
  • Effort and impact rating
  • Risks and dependencies
  • Governance and review schedule

How to use this template

  1. Agree the objective and target with the board or owner.
  2. Set the baseline cost by category using recent figures.
  3. List initiatives and rate each on effort and impact.
  4. Assign owners and dates to the initiatives you will pursue.
  5. Review progress monthly and record delivered savings in the tracker.

Frequently asked questions

With a clear view of spend. A spend analysis shows which categories and suppliers to focus on first.

Rate each initiative on its effect on customers and operations as well as savings, and involve the people who use the spend.

The plan sets out what you intend to do. The tracker records what has actually been delivered and signed off by finance.

Need help putting this into practice?

Every engagement is managed by our founder, starting with objectives agreed with you. Book an introductory call to see how our cost reduction work could help.

Cost reductionBook an introductory call

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Last updated 22 October 2026