• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Hackett Cites Globalization as Driver for Bid by Business to Cut Costs, Boost Agility

Hackett Cites Globalization as Driver for Bid by Business to Cut Costs, Boost Agility

September 1, 2006
Global Logistics & Supply Chain Strategies

Top executives are no longer focused solely on cutting costs in their general and administrative operations, and the pressure of globalization is the reason, according to speakers at the 16th annual Best Practice Conference of The Hackett Group. With consumers demanding the lowest possible price (and then some), companies continue to search for every possible way to reduce overhead. But they also see a need for increased agility, with the rise of offshore manufacturing and the expansion of global markets. As customers acquire more power and insist on better service, change must come faster than ever before. So executives are seeking to improve performance in finance, information technology, human relations, procurement, working capital and other areas.

Some 400 executives from top companies attended Hackett's annual two-day conference in Atlanta this year. Speakers included executives from Alcoa, Citigroup, Constellation Energy, HP, Greif, Nissan and U.S. Steel. Richard T. Roth, Hackett's chief research officer, said at the event that executives are under growing pressure to provide both superior pricing and product flexibility, all the while delivering greater shareholder value while fending off competitors. (See above item about why a dwindling number of U.S. managers dream about being CEOs.) "The best companies understand that in today's market, you simply don't have a choice," Roth said. "Costs must continue to drop, driven by everything from global forces and low-cost sourcing to new technology and new competitors. In G&A, this means companies must raise the bar on efficiency, while maintaining a bright-line focus on operational excellence."

Previewing its 2006 "Book of Numbers" research at the conference, Hackett revealed that world-class companies are spending 40 percent less than typical companies on selling, general and administrative (SG&A) costs (9 percent of revenue versus 15 percent). In the process, they are generating $60m in savings per $1bn of revenue. By function, Hackett said, top performers spend 45 percent less on finance, 13 percent less on HR, 25 percent less on procurement, and 7 percent more on IT. In the last category, increased spending is necessary for world-class companies to reduce costs and improve performance in other areas of SG&A, Hackett said.

Visit www.thehackettgroup.com

RELATED CONTENT

RELATED VIDEOS

Supply Chain Finance & Revenue Management Sourcing/Procurement/SRM Technology Global Supply Chain Management Quality & Metrics Retail
KEYWORDS Global Supply Chain Management Quality & Metrics Retail SC Finance & Revenue Management Sourcing/Procurement/SCM Technology
  • Related Articles

    Caught in the Middle: U.S. Food Service Distributors Search for Ways to Cut Costs and Enhance Offerings

    Six Sigma Is No Cure-All for Business Ills, Says Hackett Group. Here's Where It Falls Down on the Job

Global Logistics & Supply Chain Strategies

Transplace Helps Del Monte Streamline Network

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • This Uber-Like Solution for Trucking Grains Could Optimize U.S. Agriculture

    Supply Chain Data Is Key to Solving Global Food Crisis

    Supply Chain Security & Risk Mgmt
  • 1014_digitaltabletfactory.png

    How the Metaverse Has Changed Manufacturing

    Technology
  • data

    Podcast | Quantum Computing for the Supply Chain: Is It Here Yet?

    Technology
  • emissions

    Visibility of Scope 3 Emissions Is Lacking. It’s Time to Fix That.

    Transportation & Distribution
  • code

    Achieving True Visibility Through a Supply Chain Control Tower

    Data Management (Big Data/IoT/Blockchain)

Digital Edition

Scb may 2022 sm

2022 Supply Chain ESG Guide

VIEW THE LATEST ISSUE

Case Studies

  • Returns Management SaaS Saves Retail Giant $4 Million Monthly

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics CoEnterprise
Data Capture E2open Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Inmar Keelvar Kinaxis
Korber Liberty SBF Locus Robotics
Logility Lucas Systems Nvidia
Old Dominion ORTEC Parsyl
PMMI QIMA Redwood Logistics
Ryder E-commerce by Whiplash Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Verity Verusen  
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing