REENGINEERING OF BUSINESS PROCESSES AS A TOOL FOR COST MANAGEMENT

Abstract

The relevance of this study lies in the fact that at the present stage of economic development, companies must continuously search for ways to improve the efficiency of economic activity. One of the ways to solve this problem is to improve the cost management complex, which will allow the company to operate more efficiently in a highly competitive environment: maximize profits, minimize costs. Achieving a sustainable advantage over competitors today is possible only if there is a lower cost of production compared to other manufacturers. One of the tools to reduce costs is the use of business process reengineering. Business process reengineering can be considered a highly effective method of cost management by a company. The result of the change in the business architecture of enterprise management is a new business model, fully focused on the economic strategy of the company and taking into account all changes in the external environment. A company that responds promptly to changes in the external environment and uses resources as efficiently as possible wins the competition, securing market share. Using the example of a construction company, the reengineering of business processes as a tool for reducing direct and overhead costs of the company is considered. A strategic map of a balanced scorecard was built for the company, the company's goal was defined, the most priority business processes affecting costs were identified, tasks were defined - to optimize the procurement and supply of materials, reduce construction time, improve the quality of construction work. The result of reengineering is presented - the formation of a new optimal model of business processes.