of executives prioritize supply chain and manufacturing costs
of companies met or exceeded initial cost savings targets. However,
of companies experienced costs eventually creeping back.
Key areas include logistics optimization, digital lean manufacturing, and flexible sourcing.
Cost savings fund key initiatives like digital and AI, sustainability, and supply chain resilience.
Cost Management: Strategic Priorities and Challenges for 2024
Amid macroeconomic challenges and the need to expand product lines and throughput, effective cost management has become crucial for organizations. This section presents key statistics from the latest BCG report, highlighting the strategic priorities and challenges facing executives in 2024.
Cost Optimization Killers
Making cost a big scary secret.
- People can’t improve what they don’t understand.
- Tell them what it is, why it’s important, and how to track and improve it.
- Teach everyone to read a balance sheet.
Running the race as the hare instead of the turtle.
- Reducing costs in sprints is hugely ineffective. Adopt an even & constant strategy of prudent frugality.
Having Cutting Cost be the objective instead Quality.
- When you focus on cost reduction it results in loss of confidence in leadership and anxiety about the future.
- When you focus on reducing the Cost of Quality it inspires and engages people.
"Avanulo has worked on scores of major projects over the last 15 years around cost optimization resulting in cost savings exceeding $500 million"
15% Avoidable costs due to manual operations
68% Impact on the bottom line due to operational inefficiencies
17% Cost impact due to inefficient employee onboarding and time to productivity
Success Stories
Consumer goods annual operational cost savings in 3 months
Food processing plant labor cost savings in 3 months
Tier 2 auto plant cost saving in 6 months
Paper mill operational cost optimized in 3 months
Prudenta Digital combines Avanulo’s lean framework with digital playbooks for sustainable outcomes.
Avanulo’s Lean
Framework
+
Digital playbooks
Fastest way to start execution!
We have put together carefully considered Prudenta toolkit to help you get to your outcomes faster. The starter package includes:
| Consulting/advisory | Set of automated digital playbooks | Set of ready-to-use templates, tools, & resources |
|---|---|---|
| 80 hours initially | 1440 review system | Task based budget |
| 100 hours weekly check-ins for next 2 months | Prudenta kickoff playbook | Risk management tool |
| 40 hours of monthly check-ins for 4 months | Daily review cadence | Opportunity tree |
| - | Weekly review cadence | Project calculator |
| - | Monthly review cadence | Gemba walks |
| - | Optimization playbook | - |
Start execution
Using Prudenta, you can cut the time from implementation to results, in half, double the return per project, achieve your goals without restructuring, and enjoy lasting impact
The starter package includes:
- 220 hours of consulting/advisory
- 6 Operational Playbooks
- Custom templates, tools and resources
- 500 Users
Ready to Learn more
about Prundenta Digital?
Driving Consistency
Pre-planned activities help standardize operations.
Setting Foundations
Streamline basic operations and focus on the big picture.
Providing Guidance
Teams should know what to do in any situation.
Enabling Scale
Handle multiple scenarios across multiple roles.
