The following articles have been published by various consulting companies on the area of Cost Improvement. Some of these articles are a few years old. Nevertheless, they provide valuable information, are excellently written and many of the themes and trends would appear to remain current.
What’s Next? Deloitte’s second biennial cost survey
Cost-improvement practices and trends in the Fortune 1000
Companies today are under constant pressure to reduce costs; yet after years of significant cutbacks, additional opportunities to save money are getting harder and harder to find.
To learn how businesses are tackling this challenge, Deloitte conducted an in-depth follow-up to the breakthrough cost-improvement survey we conducted in 2008. This year’s study included 139 senior executives from the Fortune 1000, which consists of publicly-traded companies with annual revenues in excess of $1.5 billion.
Restructuring Study: International 2010 – Roland Berger Strategy Consultants
After the Economic Crisis – Growth and Financing
In spring 2010, Roland Berger Strategy Consultants conducted a study of trends in restructuring for the sixth time since 2001. We sent questionnaires to CEOs and managers at around 5,600 companies in various industries and regions. The aim of the study was to find out how strongly and in which areas the crisis is still affecting companies in 2010 and what managers view as the opportunities in the upcoming recovery. The major conclusion is, that the economic crisis has bottomed out and that companies around the world again focusing on growth strategies.
Five ways CFOs can make cost cuts stick – McKinsey & Co
Successes in cost cutting erode with time. Here’s how to make them last.
Optimism is on the rise that a solid economic recovery is taking hold around the world, but the cost cutting so prevalent during the recent recession looks to remain a strategic priority for some time. Indeed, the number of executives reporting steps to reduce operating costs in the next 12 months increased significantly between February and April, even as confidence in the economy grew. Yet any successes companies have at cutting costs during the downturn will erode with time. Many executives expect some proportion of the costs cut during the recent recession to return within 12 to 18 months —and prior research found that only 10 percent of cost reduction programs show sustained results three years later.
Rethinking Cost Structures – KPMG
KPMG International commissioned the Economist Intelligence Unit (EIU) to write Rethinking Cost Structures: Creating a sustainable cost advantage. The report is based on the following research activities:
- The Economist Intelligence Unit conducted a global survey of 427 senior executives, half of which were C-level executives. The survey covered a cross-section of industries and large, midsize and smaller organizations.
- To supplement the survey, the Economist Intelligence Unit conducted a program of interviews with 21 experts and practioners in the field of cost management. We would like to thank those listed below for giving their valuable time and insights.
In Fighting Shape? – Deloitte
Cost improvement has become a standard operating practice for many companies. According to our study of 70 Fortune 500 companies, more than two-thirds have maintained an ongoing focus on cost improvement—even during the recent economic boom. This is good news, particularly because conventional wisdom we’ve heard suggests that businesses only pay attention to cost reduction when times are tough. The bad news is the approach these large companies are taking to cost improvement may not be suf?cient to see them through the uncertain times ahead.
What worked in cost cutting—and what’s next: McKinsey Global Survey results
Companies were able to cut costs effectively through the crisis, executives say, but they’re less confident of their ability to contain or continue to cut them. Some companies are positioning themselves for longer-term success by planning the next round more strategically.
Executives say their companies have made effective and significant cutbacks in overall costs since the onset of the economic downturn in September 2008, according to a recent McKinsey survey.
Suppliers as Partners: A Catalyst for Savings – Boston Consulting Group
Too often, companies approach their relationships with suppliers and service providers as adversarial power plays, always pushing for lower prices. But price cuts rarely confer a sustainable market advantage. That’s why some companies are conducting hands-on workshops with these potentially valuable partners to generate new ideas for improving products, processes, purchasing performance and logistics. The result? Lower costs, shorter lead times, better service, and higher quality—-along with deeper supplier relationships.