Shanton Wilcox, manufacturing expert at PA Consulting, has been quoted in an article about the potential for cost optimisation to unlock innovation across industries. The article includes the findings of PA’s recent report on cost optimisation.
The article explains how PA’s research found optimisation is often viewed as a short-term reaction to a threat, but if done well, it can help firms increase margins, gain new product insight and unleash innovation. PA’s report found the automotive sector ranked highest in terms of its overall cost optimisation performance. Life sciences, industrial engineering, energy and utilities, and consumer products were also identified as leaders.
It goes on to outline the six dimensions PA has identified as being key to optimising costs: strategy, organisation and governance, processes, tools, competencies and skills, and methodologies.
Shanton explains: “A new ‘always-on’ attitude to cost optimisation will help organisations emerge stronger and ready for the challenges ahead. Done well, cost optimisation doesn’t just protect organisations during uncertain times.”
He continues: “It identifies ways to increase margins, gain new product insight and unleash innovation. It presents an opportunity to rejuvenate an organisation – increasing collaboration and empowering people to cut costs in creative ways. It changes the way organisations think about costs.”
The article goes on to discuss how, as the world starts to unfreeze from the global lockdown, CEOs and CFOs are reaching out to their procurement functions for high-calibre support.