Background and Challenge

An agricultural storage system manufacturer in Brazil hired L.E.K. to identify cost reduction opportunities to maintain profitability in the new market scenario.

Approach and Recommendations

First, a high-level cost analysis of each of the client’s areas was conducted and used as a guide for interviews with employees, to assess possible cost reduction opportunities.

The cost reduction opportunities identified during interviews were separated into two categories:

  • Short-term initiatives, involving adjustments in the company structure to address the new market scenario
  • Medium-/long-term process improvements, involving changes in sales, production and installation processes

We estimated the cost reduction of each initiative, and concluded by creating/revising existing implementation plans.


We helped the client identify short-term and long-term cost reduction opportunities of R$20-30 million and approximately R$80 million, respectively.

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