Capitalizing on untapped SSG&A levers
As companies grapple with a series of crises (e.g., COVID-19,
war in Ukraine) and disruptive changes (e.g., transition to
e-mobility, energy revolution, sharp increase of interest rates),
they face cost inflation (regarding materials, logistics, energy,
wages), price pressure, rising financing costs, and a prospective
economic downturn. Unable to pass on all cost increases to
customers, many businesses are witnessing eroding margins and
profits.
To counter these disruptive forces, many companies have
addressed direct costs through cost-cutting programs. However, to
defend and enhance margins long-term, additional cost structures
warrant critical evaluation. Structural, Selling, General &
Administrative Expenses (SSG&A) often offer up to 35% savings
potential, but remain frequently untapped. Optimizing SSG&A
functions such as purchasing, finance, HR, and marketing, poses
major challenges for many companies, and realizing cost
