Original Source:  The Sourcing Innovation Blog

“Cost reduction can be generally defined as the act of cutting costs to improve profitability. Cost reduction is often confused with cost avoidance, which is more properly defined as the act of eliminating costs or preventing their occurrence in the first place. Both types of cost control, which are two sides of the cost containment coin, are important and necessary for a company that wants to achieve and maintain profitability, especially in a weak economy…” 

http://www.sourcinginnovation.com/glossary/CostReduction.php

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Category Specific, Finance, Real Estate