ABSTRACT
In-between those two lines are a myriad of areas that impact the well-being of the firm. As companies reach the point of diminishing returns from their endless cost-saving efforts, a new look pervades the firm. Now the company focuses on the top of the P&L statement and moves through each category to determine how improvements can be made, expecting profits to be enhanced. Reducing returns takes on new meaning as firms work with key customers to get at root causes for problems and make them go away forever. Working with key suppliers to find features that delight customers, cutting cycle times for new product introductions, and moving from a reliance on sales forecasts to
online access to actual consumption become new initiatives. Being able to see what is in the supply chain pipeline becomes extremely important. Outsourcing entire functions to more competent partners is seriously considered.
