Initially, when an organisation encounters problems, and starts to decline in terms of revenue and/or
profits, the typical management reaction is to assume the situation is a temporary one requiring nothing
more fundamental than some cost cutting. Costs can be reduced anywhere in the supply chain, but
the most obvious and usual starting point is to reduce labour costs. At first, this may simply involve
altering working patterns to eliminate overtime or, as is increasingly the case, to replace full-time with
part-time jobs.