You want to understand how your costs are made up.
So how to approach cost reduction? You proceed by type of costs.
First, let's look at variable cost.
What are the biggest shares of variable cost?
Look for way's how you can reduce the cost per item. Is there a way to re-negotiate prices with your suppliers? Can you change suppliers in order to save costs?
Then take the time to go through your fixed cost items step by step. Start with the biggest items and step by step navigate your way to the smaller items. This way you will keep your eyes open for quick wins, for items that can be reduced quickly and without any long-term harm to your business.
Try to come up a list prioritised by
Next, take a step back to think about the impact that the crises may have on your cost. What impact could it have (i) on the volume you require, and (ii) on the market prices for the items?
There are cost items that become redundant and there are cost items that become cheaper due to the crisis.
First, are there any costs for services that you have no use for right now? Which cost items have become redundant because of the crisis? Obviously any subscriptions to travel services may become redundant. But may be it turns out that marketing initiatives might have only limited effect during the crisis. Try to make a calculation as to whether you would be able to cut such expenses without seeing revenue decline? Anything that will not lead to revenue in the next few months may become redundant as well.
Then here is the complex part. What impact could the crisis have on the pricing of the items that you purchase? Could the crisis provide you with opportunities to get better terms? Do capacities on the markets have changed due to crisis? In other words, is there an oversupply for any of the items you need? What could be the possible impact on prices and pn demand? Could you make use of such a situation by renegotiating with your suppliers?