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Manufacturing Network Concentration

Manufacturing Network Concentration

Now Could Be the Time to Act

Manufacturing networks drive unnecessary costs, capital and obstruct service if not aligned with products, sales and production technology. Historic events and organizational heritage often lead to manufacturing networks that are not optimal from these perspectives. Although companies are often aware of the problems, many are hesitant to start restructuring activities in a good business climate. The current economic downturn accentuates the problems with overcapacity, high fixed cost or geographical imbalances. Arthur D. Little argues that now is a good time to review and restructure manufacturing networks. Arthur D. Little offers a pragmatic yet rigorous method to quickly come to the right decisions and put implementation plans and structures in place.

Released: February 2010

To download please login or register as a new user ADL_Manufacturing_network_concentration.pdf (.PDF, 331 kB)

Total Market Orientation

Total Market Orientation

Benchmarking study reveals key levers underpinning marketing and sales excellence

Arthur D. Little and the Leipzig Graduate School of Management recently undertook a cross-industry benchmarking study to identify the key levers to achieving marketing and sales excellence. Over the last 18 months companies have focused on cutting costs/downsizing and fueling idle production capacity, often entailing price reductions or extended payment terms. Now, with the first signs of an economic recovery (with Asia as growth driver), executives need to ‘gear up’ to be able to take advantage of the increasing opportunities now presented, albeit at significantly reduced pre-crisis levels. The study finds that the engineering, manufacturing, and high-tech sectors have huge untapped potential for improving their performance across all categories that contribute to excellence in marketing and sales.

Released: November 2009

To download please login or register as a new user ADL_EM_Total_Market_Orientation_2010.pdf (.PDF, 287 kB)

The Hidden Value In Your Accounts Receivable

The Hidden Value In Your Accounts Receivable

The hidden value in accounts receivable - how to use 3rd party services

First-class accounts receivable management increases a firm’s value. Overlooked by many companies, reducing accounts receivable by use of 3rd party services, is a value creation lever frequently addressed by private equity owned companies. 3rd parties offer a wide range of services; from debt collection, to advanced financing solutions. Arthur D. Little shares its insight into the services, their properties, business cases, financial effects and implementation.

Released: October 2009

To download please login or register as a new user ADL_Hidden_value.pdf (.PDF, 208 kB)

Marketing & Sales Excellence in the Crisis

Marketing & Sales Excellence in the Crisis

Reduce costs without jeopardizing sales generation capabilities

Chief Executives are having to prepare their companies for worst case scenarios and at the same time are gearing up to emerge in a strong position once the crisis has passed. Painful measures are already being taken in order to sustain business. Perhaps contrary to intuition and short-term pressures, this climate provides an excellent opportunity for forward-looking marketing and sales leaders to optimize their cost base, while at the same time increasing sales performance, thus paving the way for future market competitiveness. "Rigorous cost management across all functions" is an immediate need, especially for strong export orientated engineering and manufacturing companies whose order intakes are facing a steep decline with no likelihood of a short-term recovery. For marketing and sales executives, in particular, it is of paramount importance to successfully navigate the key challenge of how to reduce costs without jeopardizing sales generation capabilities in order to sustain and secure top-line results.

Released: May 2009

To download please login or register as a new user ADL_Marketing_and_Sales_Excellence.pdf (.PDF, 905 kB)

Defying Downturn through Innovation

Defying Downturn through Innovation

Innovation Restructuring: re-investment as an alternative to lay-offs

Amid the restructuring of innovation activities that takes place in response to the recession, businesses must take care to position themselves to take advantage of the upturn when it comes. Successful innovators redirect part of the financial and personnel resources released through restructuring into growth and innovation programs. Only by simultaneously adopting a prudent approach to streamlining operations and focusing clearly on developing their technology, innovation and product portfolio will businesses be ready to grow when the economic climate improves. In fact, there has not been a better opportunity for a long time to acquire new technologies.

Released: January 2009

To download please login or register as a new user ADL_Defying_the_Downturn.pdf (.PDF, 931 kB)

Design to Customer Value

Design to Customer Value

"Design to Customer Value" is a cross-functional approach that simultaneously optimizes the product in terms of customer benefits and product life-cycle costs. Key elements include an analysis of customer requirements and product functions and a technical competitor benchmarking. Delivering average product cost reductions of 15-20%, the approach also improves performance, functionality and quality.

Released: June 2008

To download please login or register as a new user ADL_Insight_Design_to_Customer_Value.pdf (.PDF, 299 kB)

Exzellenz in Working Capital Management (German)

Exzellenz in Working Capital Management

Arthur D. Little's interdisciplinary approach to working capital management optimizes working capital from both a financial and production/ logistics perspective. It also incorporates a top-down/ bottom-up working mode, which integrates the whole organization when identifying und implementing potential for improvement.

Released: May 2008

To download please login or register as a new user ADL_Exzellenz_in_Working_Capital_Management.pdf (.PDF, 811 kB)

Delocalization of R&D

Development to follow the production trend?

Discussion of the development footprint is omnipresent in western media. In our survey which we have conducted across 54 global companies in the Aerospace & Defense, Automotive, Manufacturing and Electronics industry we found out that most of the R&D headcount growth in the next five years (~15%) will occur off-shore. We investigated the off-shore destinations, the rationales behind, and the critical success factors.

Released: March 2007

Download File ADL_Delocalization_RandD_2006.pdf (.PDF, 804 Kb)

Profitable Growth through Service

Profitable Growth through Service

Innovative service strategies offer a large potential for increasing growth and profitability in the investment goods industries as in these mature markets competitive pressure is rising continuously and differentiation through physical products becomes more and more difficult. In this situation service strategies offer an opportunity for good revenue and profit growth - but:

Which services should be offered?

What are the strategies of and methods applied by successful companies?

How do these companies develop new services?

In this paper we give a summary of the major results of our 'Service Innovation Study' and additionally develop five major levers to achieve growth in the service business.

Released: May 2006

Download File ADL_Profitable_growth_through_service.pdf (.PDF, 658 Kb)

Site Selection in China

Manufacturing Site Selection in China

Driven by the need of global presence on the one hand and cost efficiency on the other hand the decision for setting up a manufacturing site in China needs to be prepared and carried out by respecting all the necessary parameters. With this paper we give upfront answers to the following questions:

Why the decision is important?

What is a regular selection process?

What are the major criteria to be considered and how to prioritize them?

What are the clues in dealing with Chinese officials?

Released: May 2006

Download File ADL_Site_selection_China.pdf (.PDF, 691 Kb)