The Ledger

New Research Proves Cost Management is Still a Global Imperative

In today’s increasingly digital world, businesses recognize the need to transform their operations and capabilities by adopting more integrated and dynamic technologies. Deloitte recently released their 2019 Global Cost Survey, and the findings show that cost reduction and cost management remains a top priority for businesses worldwide. “By harnessing the power of digital technology to streamline their cost structures and generate cost savings, companies can take full advantage of the latest digital innovations — becoming the disrupters, rather than the disrupted.” – Omar Aguilar, principal and global strategic cost transformation leader, Deloitte Consulting LLP. We all know there are only two ways to grow profits – generate more revenue or reduce costs. Investing in technology to drive down costs is important – but investing in technology to understand the true drivers of cost in your organization is equally important.

Read the full report at Deloitte >

Preparing for Modern Manufacturing Challenges

Modern manufacturing has its fair share of issues, from supply shortages to distribution problems and an ever-fluctuating economy. To be successful, manufacturing companies must overcome some of these challenges by being prepared with a solution before a problem arises. The basis of most modern manufacturing challenges is lack of flexible and scalable technology. The companies that succeed will be those which are able to move the quickest and to anticipate changes instead of just reacting to them. By preparing for the changes and having an action plan, these businesses can help to guide the direction of their development and be ahead of the market.

Read More at Manufacturing.Net >

Cost Management is Evolving With the Help of New Technologies

“Making effective cost management decisions—those that drive strategic value beyond just producing short-term savings—requires understanding how cost decisions flow through to the top and bottom lines.”

CFOs depend on insights from their analytics for important business decisions, but when faced with the rapidly changing business environments, they must change their approach to cost management. By implementing the right tools and technologies, businesses will better understand their value levers and fundamentally change their company’s cost structs, seize opportunities, and grow profitability. However, technology alone is not enough to accomplish this. Effective digital cost management also requires a far more innovative and strategic approach than traditional approaches to cost management.

Read More at The Wall Street Journal >

Manufacturing Finance of the Future: The Digital CFO

 “The CFO function within manufacturing organizations needs to make significant changes to enable companies to meet the challenges of the shift to digital manufacturing, Industry 4.0, smart manufacturing, or any one of the other associated names.”

Efforts to adapt finance functions to digital manufacturing has become a priority for modern CFOs in the industry. Manufacturers of all sizes are connecting finance directly to digital manufacturing’s data-rich environment with cutting-edge data analytics, revising strategic plans and accounting practices to incorporate new approaches to the market, and building new partnerships and finance arrangements with technology and equipment suppliers. The key to accomplishing this is developing the data analytics and systems capability to achieve real-time managerial costing and other business analytics and finding the flexibility and means to adapt the manufacturing business model and management capability to a digital Industry 4.0 world.

Read More at Strategic Finance Magazine >