jueves 25 enero, 2018
Reducing cost is a routine and painful exercise that can lead to low employee morale. However, cost containment does not have to be temporary or painful—as long as it is addressed as part of an overall company strategy, led by cross-functional teams and driven by multi-year goals that feed into operating budgets.
Accenture’s comprehensive approach to sustainable cost management fulfils these objectives. Furthermore, it is directly applicable to the chemical industry given the increased pressure for performance due to a range of market factors. These factors include acquisitions and vertical integration, low energy and oil prices, exchange rate volatility and demand for smart environmental practices that require deeper investment.
The effective implementation and execution of a sustainable cost management strategy enables chemical companies to reset their cost position, respond to dynamic market conditions and maintain cost savings over time. And, the majority of chemical executives realize the value that cost management can bring. According to Accenture research2 conducted in 2015:
- 69 percent of chemical companies rate cost containment very highly for competing with strong differentiated competitors.
- 79 percent of businesses include cost containment strategies in their business case for new market entry, new product development and adoption of new enabling technologies.
- 69 percent of businesses believe that increased technology would enable their operating model to operate at half its base cost.
Cost ManagementAccenture’s sustainable cost management approach helps simplify cost reduction by creating visibility and accountability, attacking it comprehensively and putting a structure in place that sustains it. As shown in Figure 1, the approach includes four pillars—rapid cost takeout, zero-based budgeting, organization alignment and operational effectiveness. These pillars are based on a foundation of digital technology enablers such as predictive analytics, the Industrial Internet of Things (IIoT) and cloud-based platforms that allow cost reduction to be delivered faster and more effectively.