Industrial companies are facing a challenging dynamic right now.
In many of their end markets
demand is starting to soften, creating a clear imperative to
reduce costs.
Unfortunately, we often see leaders turning to the easy
button, reducing travel budgets and stopping key initiatives
that will actually result in growth and lay the groundwork
for future success.
At BCG, we encourage our clients to look at structural,
sustainable cost measures that will set them up for the long
term, looking at 0 basing the organization and budgets,
looking at product costs and underlying complexity,
evaluating the supply chain and procurement practices, and
digitizing and automating back office processes.
Companies that pull these levers, among others, will set
themselves up for sustained cost reduction and allow themselves
to act from a position of strength.