Cost management is one of the top priorities
that operations leaders have as they get ready for 2024.
But cost is not a new topic or goal
when it comes to operations transformations.
It's long been central, but it's coming back.
That said, there are a few things
that are different this time.
The first is that companies have worked really hard
to attract and retain workers for a few years.
And usually headcount reduction
is a key part of cost transformations.
So that presents a dilemma for operations leaders.
That means that digitization and automation of work,
making that work more efficient,
are going to be central to cost reduction efforts.
Therefore companies need to get a better
and more consistent return on their digital investments
than they have for the past few years.
And then, finally, people have been talking
about supply chain resilience,
and now they're talking about cost.
And that means that operations leaders
are wondering: do they need to abandon those investments
and resilience that they've made
or can they pursue them in a more cost-efficient manner?
(upbeat music)