Monday, 19 August 2013 00:03
The Chartered Management Institute (CMI) Sri Lanka branch, joined hands once again with their exclusive knowledge-sharing partner, KPMG in Sri Lanka, to conduct an evening presentation on 7 August on the topic “When Margins Matter”, focusing on cost and margin management in the context of modern business environments.
Welcoming the participants CMI President Rohitha Mendis said that it has been identified that most businesses operate in intensely competitive markets where price is most often “a given” and effective cost and margin management is therefore viewed as being an important pillar in driving business performance and profits. CMI in keeping with their motto of sharing professional knowledge along with KPMG thought the time was opportune to share some knowledge on the subject.
The highlight of the evening was a presentation by KPMG India Partner – Management Consulting Ashvin Vellody on key considerations relative to effectively managing cost drivers. He emphasised the importance of taking an organisation-specific, collaborative and function-wide approach to cost optimisation.
An eminent panel of corporate leaders that included the Hatton National Bank Chief Operating Officer Dilshan Rodrigo, Brandix Group Chief Financial Officer Hasitha Premaratne, Aitken Spence PLC Group Chief Corporate Officer Vipula Gunatilleka, KPMG in Sri Lanka Partner - Management Consulting Dulitha Perera and Ashvin Vellody, shared their views on the topic. The discussion was moderated by KPMG in Sri Lanka Director – Advisory Kamaya Perera.
Speaking on the theme and its relevance to the apparel sector, Hasitha Premaratne provided some insights as to how his organisation is currently reaping the benefits of taking timely initiatives to implement decisive and long-term cost management and revenue enhancement measures.
Vipula Gunatilleka stressed on the importance of organisation and industry-wide collaboration in effectively optimising costs. He went on to state that strategic collaborations, such as resource sharing initiatives implemented by players in the telecommunications sector are a prime example of cost benefits driven by industry wide collaboration.
Dilshan Rodrigo shared his experiences on how the banking industry has embraced innovation and technology as a means for cost and margin management. He went on to discuss how technology will play a pivotal role in facilitating cost effective functions and solutions within organisations.
Dulitha Perera during his presentation noted that organisations often turn to retrenchment and layoffs as a strategy for cost reduction, while ignoring other long-term approaches. He also mentioned that sustainability is a key feature of an effective cost management strategy and that strategists should not ignore the priority that should be given to key functions such as research, training and development.
CMI and KPMG hope to continue their partnership on similar knowledge sharing initiatives, bringing together industry professionals to share their expertise on topics that are of relevance to the Sri Lankan business environment.