Shows the important way of improving profitability by increasing the gross margin by reducing the cost of sales.

To demonstrate the impact of reducing the cost of sales in the overall mix of financial or profit levers that can be 'pulled'
 

1. Identifying the major components in the cost of sales

2. Identifying the various cost drivers

3. Identifying costs of supply

4. Using supply chain management

5. Measuring cost and performance of all suppliers

6. Measuring the productivity of labor

7. Using new approaches with suppliers

8. Implementing improvement in labor productivity

9. Reviewing changes in supplier performance

10. Developing new policies based on feedback