The CEO launched an enterprise-wide cost-reduction transformation with the goal of making the organization more agile and its products more competitive in the market.
nosso Abordagem
A empresa contratou o BCG para entender a lacuna de custo e projetar e implementar uma transformação abrangente para reduzir rapidamente os custos - particularmente os custos de SG&A e do produto. O Transformação de custos teve quatro componentes principais.
Realize um diagnóstico rápido para identificar as maiores oportunidades
Our experts started with a rapid, six-week diagnostic to benchmark the company’s costs across all dimensions. We analyzed the product portfolio and value chain, looking at the network of suppliers and manufacturing facilities, going factory-by-factory to assess which processes and functions were—or could be—handled in low-cost countries. We also examined products in key segments to identify the biggest cost drivers.
The result of the diagnostic was a roadmap for the transformation—a clear set of priorities for cost reduction, along with targeted savings and a timeline to achieve the goals of individual initiatives.
Reduce Overhead Costs and Rethink Procurement
In the short term, the company revamped its organizational structure to create clearer accountabilities across product lines, reduce complexity, and streamline decision-making. The company also looked at procurement, introducing some new suppliers—including those in low-cost countries—and renegotiating contracts with existing suppliers. Doing so created competition and helped the company become more competitive. Sourcing components from lower-cost countries led to a potential savings of 8%–10% for many categories—and even higher for others, such as plastic and electrical components.
Redesign Products for Value
The company applied BCG’s robust, proprietary Design to Value toolkit to understand the cost drivers of products in the portfolio. That data-driven process involved tearing down certain products and determining where design changes could reduce the costs without impacting performance. We also helped the company identify design features that were no longer important to consumers. Throughout the design-to-value process, the company leveraged BCG’s Genai-Ferramentas alimentadas para aproveitar as idéias dos benchmarks de custo de matéria-prima para criar reivindicações baseadas em fatos para economizar renegociações. Para esse fim, eles criaram um Escritório de Gerenciamento de Transformação (TMO) que serviu como uma torre de controle para todo o esforço. O TMO supervisionou os cronogramas e os marcos, as interdependências coordenadas para acompanhar o desempenho nas funções e estabelecer a governança correta para garantir que a empresa estivesse percebendo o impacto da transformação dentro do cronograma e permanecendo disciplinado para garantir que os custos não voltem ao longo do tempo. O resultado
Oversee the Program Through a Transformation Management Office
In addition to the “what” of the transformation (the targets the company hoped to achieve), leaders also focused on the “how.” To that end, they created a transformation management office (TMO) that served as a control tower for the entire effort. The TMO oversaw timelines and milestones, coordinated interdependencies to track performance across functions, and set the right governance to ensure that the company was realizing impact from the transformation on schedule and staying disciplined to ensure that costs didn’t creep back over time.
