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In the current marketplace, having a low-cost position is a key differentiator between leaders and followers. We help companies in a wide range of industries around the world create disruptive changes in their cost position, be it to help them catch up with the industry’s cost experience curve, protect margins in spite of erosion of average selling prices, or to widen their competitive advantage. These programs use a battery of tools to deliver 10 percent to 40 percent reduction of a company’s addressable cost base across multiple areas of the value chain.
Achieving a low-cost position is critical for most businesses both because of the obvious improvement to the bottom line, and for the ability to fund investments and growth initiatives that otherwise would be out of reach. Our clients typically use a portion of the captured savings to invest in R&D, marketing, new market entries or simply more competitive pricing.
While we many times work with companies to help them achieve functional excellence within individual areas of the organization, we unlock the most value by taking a cross-functional approach, and addressing operating problems at the nodes, or the points where business units, functions, geographies, and layers of management intersect and have to make and execute critical decisions. In our experience, this approach creates between three and four times as much value as the traditional approaches to right-sizing and functional excellence.
A better business model and $300 million in cost savings enabled MedtechCo to invest in rapidly growing emerging markets.
Bain's performance improvement initiatives reversed the steadily declining course of our global telco client, generating over 20 percent in operating savings.
We work as an integrated part of your team, from frontline to C-suite, to deliver true results and make the changes stick.
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From day one, we focus on predicting, measuring and managing risk associated with change
Too many cost-reduction efforts fall short of their goals. The leaders follow four key elements to reduce costs and keep them low.
