Drive enduring 360° value
Companies are facing an extraordinary amount of change and problems at an unprecedented pace. From altering the attitudes of employees and customers to disrupting the supply chain, geopolitical unpredictability, and record inflation. Organizations require a long-term competence that sees beyond the immediate financials in order to provide continuous productivity gains that support growth, as opposed to a straightforward cost-cutting exercise.
In order to drive growth and resilience, reinvention necessitates a radically different approach to cost that is based on reevaluating priorities and reallocating resources. Integrating financial decisions with human behavior is necessary for long-term cost change.
Accelerate cost transformation to drive sustainable growth
Cost interventions might have assisted firms in navigating through turbulence, but in a world where change is continual, the one-and-done strategy is ineffective. Instead, in order to rethink how businesses operate, they must adopt a comprehensive strategy that takes into account people, productivity, sustainability, data, and technology.
5 ways Leaders can Battle Inflation and uncertainty Today
Businesses are facing a dual mandate: they need to increase growth investments while simultaneously reforming costs comprehensively for greater resilience, given the indications of further inflation and uncertainty. Even though they realize it won’t be simple, executives are nonetheless upbeat about meeting their growth targets.
Cost transformation, in its purest form, refers to cost optimization that is long-term sustainable. The question is, though, how to achieve it in an era of unprecedented change? Bringing your resilience up to date is the solution.
In order to identify where spending is going, how it’s affecting the business, and how to reroute it, today’s leaders want real-time visibility into cost drivers throughout the value chain. Here are the tools: As a matter of fact, there is a growing disconnect between the real and potential uses of data science and technology.
Leaders have the ability to build new zero-based cost structures and perform forensic evaluations of existing ones using sophisticated cloud-based analytics software. In order to achieve real change and long-term sustainability and success, they also learn how to develop a new, cost-conscious company culture.
Prior to making decisions that would optimize earnings, you need to have a detailed understanding of your cost structure. Discover the “cost-to-serve” technique, a novel strategy that utilizes artificial intelligence and analytics to reveal your “true” expenses and profitability at the product, SKU, customer, and channel levels.
The days of merely raising prices and passing along costs are long gone. For a comprehensive picture of the cost drivers throughout your value chain, cost-to-serve takes into account both traceable and untraceable costs. You can allocate resources more effectively and take more decisive action to respond to, anticipate, and welcome change when you have a clearer, more complete picture of the situation.
THE BIG RESET Cutting costs and surviving are no longer the only priorities of top companies. Instead, they’re beginning again with cost transformation in order to reimagine for growth and productivity.
Three fundamental principles are at the center of this major reset: talent, sustainability, and technology. Our paper outlines how future-ready firms manage challenges holistically across the company to create growth, resilience, and competitiveness. It also lays down the four elements to effective cost transformation and profit acceleration.
Capabilities
Wherever possible, allocate resources to promote growth, resilience, and competitive advantage. Learn More
Integrate data, AI, and “should cost” research to assist obtain the visibility and adaptability needed to make quick decisions when circumstances change. Learn More
Harmonize cost strategies and resource allocation with key priorities, such as sustainability, to responsibly undergo transformation and deliver comprehensive value in all aspects. Learn More
Envision a transformation for your organization and workforce, ensuring that cost structures and resources are in sync with this overarching vision. Learn More
Enhance the resilience of the supply chain by leveraging data and insights to determine the optimal costs for goods and logistics. This will contribute to the optimization of performance, pricing, and agility. Learn More
