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Etude

Effectively controlling administrative costs

Sustainable cost control is always an important topic for executives of any business. Lower costs are a source of competitive advantage and allow for flexibility in times of crisis. A lean and well-controlled cost structure is even more important when competing with imported products less impacted by poor local infrastructure and the complexity of domestic bureaucracy.

For many years, the rapid growth of the Brazilian economy partially offset or mitigated the impact of high costs. This is no longer the case. Many companies already express, whether privately or in public statements, major concerns regarding the evolution of their administrative and industrial costs.

Foreseeing the increasing relevance of this topic, Bain & Company decided to offer a counterpoint to the problem. In late 2012 we invested in building a database of cost and performance benchmarks for various administrative functions and industrial overhead. We benefited from the participation and collaboration of more than 30 companies in Brazil, Argentina, Chile and Peru.

(Full article only available in Portuguese)

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