A More Effective Approach to Traditional Cost Benchmarking
- VOLUME XII, ISSUE 2
- Executive Insights
Given the significant pressures facing the building materials industry today, it has never been more important for manufacturers to improve cost positions relative to their competitors and have a strategy to achieve appropriate cost targets. Today’s economic uncertainty – and the additional pressure to improve profitability in order to survive the economic downturn – makes the goal of achieving a low-cost position critical to day-to-day operations.
L.E.K. Consulting has developed a proven cost benchmarking solution that is based on developing delivered cost supply curves for a specific market and modeling changes in:
Relative to traditional cost benchmarking, this approach leads to more effective decision making that increases profitability and also improves competitive advantage, capital allocation and pricing.