Surviving and thriving in this recession is a strategic and performance-related challenge. Managing cash is important across the value chain - taking care of working capital and preserving the top line are key. PA Consulting Group sees four main areas of strategies and actions in order to sustain results and use opportunities in the economic crisis:
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Better utilisation of total capital with adjustment of production capacity. For example PA restructured the operating, engineering, and purchasing functions of Inalfa Roof Systems delivering annual savings of 2% more EBIT margin.
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Managing competitive advantage and renewing the manufacturing strategy. For example PA established a new factory for Siemens with a saving of €1 million.
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Performance improvement and supply chain excellence. For example PA implemented cost control for Fiat trebling the annual value of cost-saving ideas to over €100 million and reshaped the global supply chain for MAN cutting time and resources spent on firefighting by up to 90%.
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Innovation and betting on new markets. For example PA developed an innovative solution to enable IMI Vision's heavy engines to meet emissions regulations.
PA supports these objectives particularly for automotive, consumer products and engineering sectors, working with management and staff to turn around clients' organisations. PA combines services, such as best practice costing, restructuring and turnaround and innovation efficiency for developing a strong manufacturing strategy. PA outlined its views on how manufacturing businesses can emerge as winners from the economic crisis in a webinar for the World Trade Group.
To discuss how PA can help your manufacturing business survive and thrive in this environment, please contact us now.
