The perception of the unique challenges faced by the consumer packaged goods (CPG) industry varies across the different continents we surveyed for our recent index. However, high costs and low margins ranked the highest among our global constituents. The following infographic ranks the top two issues by region according to the companies we surveyed in North America, Europe, Asia, South America and Africa.
After years of working capital deterioration, companies are beginning to understand the importance of working capital as it relates to sustaining day-to-day operations and stimulating growth. According to PwC's 2015 Annual Global Working Capital Survey, last year was the first significant decrease in global working capital in four years, with a 2.9% year‑on‑year improvement. This trend is also linked to an 11.3% spike in the level of cash held by companies -- the highest surplus of readily avialable funds in five years.
Unfortunately, we are seeing far less procurement initiatives that target efficiency and effectiveness in the field despite the ongoing promise of great rewards from companies that offer related products and services. The C-level executives we spoke to recently were very forthcoming about a general lack of progress due to ineffective responses to strategic problems and opportunities.
The issue of poor time management does not discriminate – affecting all industries and facets of a business. It can be a real eye-opener for executives when examined from a cost perspective, but it also presents a tremendous opportunity for improvement.
One of the most significant challenges facing many businesses today is the dire shortage of highly skilled workers. These shortages are reaching such alarming levels that business leaders and economic pundits believe the mismatch of supply and demand could hinder economic recovery. However, the following six steps have the potential to mitigate the effects of a skills shortage without increasing costs.
In her second installment on supply chain performance, Alexander Proudfoot Global Supply Chain Lead, Jaymie Forrest focuses on seven ways to improve working capital. They are as follows:
Recently, former President & CEO of Chevron Phillips Chemical, former President of Chevron NA Exploration & Production and current Alexander Proudfoot Advisory Board member, Ray Wilcox had the opportunity to speak at this year’s Operational Excellence in Oil and Gas Summit held in Calgary. His keynote speech “Bridging the Execution Gap” was well received by the many oil and gas executives that were in attendance.
Managers and supervisors that are too wrapped up with administrative tasks are neglecting valuable opportunities to coach and mentor employees. However, our findings show that people delegated to positions of authority often do not have the skills necessary to be competent leaders in the first place.
In a recent interview with several c-level executives, we had the opportunity to discuss how to bridge the gap that often exists between a company’s best demonstrated performance and its true potential.
An Enterprise Resource Planning (ERP) system impacts every facet of a business -- from accounting and finance to sales and marketing. There is not apersonor process that does not feel the effects of a newly installed ERP system.
Supply chain improvements can generate up to 3.5% savings in total operating costs. Currently, many business leaders are focusing on major initiatives to improve theirs. We took a deeper look to evaluate the main trends on this topic. See the results in this infographic.
Energy can be a huge source of savings, or a financial burden depending on how a business is run. There are many variables that determine how energy efficient an organization can be. Is there an energy policy in place? Is energy use and planning discussed in meetings? What percentage of the operating budget is energy? These are all questions executives can use to self-evaluate their organization.
Key to any mining operation, the maintenance function is what sustains a high level of productivity. Without it, trucks would break down and machinery would fail – potentially costing a company millions in repairs and lost productivity. By the same token, a poorly managed maintenance program can have the same expensive consequences.
In several of our recent engagements we have witnessed first-hand the enormous amount of pressure on CEOs to meet the stringent demands of both stakeholders and customers. One such demand that continues to be a top priority for executives is employee productivity. Our experience tells us that a decline in workforce performance and efficiency can put a major dent in an organization’s bottom line.
CEOs from around the globe recently touched on how important it is for senior executives to be able to predict a future state that not only rewards investors, but also lays the foundation for a strong customer base. The decision to move in any given direction should be unanimous. Otherwise, the chances of successfully driving necessary change initiatives are greatly diminished.
Most sales organizations consistently fall short
A common problem among CEOs is sales organizations that overpromise and underdeliver. Our past experience shows that executives often struggle to transform their sales force into a high-performing, customer-centric team. One mistake we typically see is the tendency for executives to depend heavily on a select few top-performers to carry the sales load.
With January's job numbers to be released soon by the Labor Department, economist are expecting to see the economy improve by the unemployment rate dropping again. Presently, the jobless rate in the United States is 5.6 percent, an eight-year low.