Manufacturers Seek Cost-Cutting Alternatives to Outsourcing
MIAMI/LONDON — U.S. manufacturers are targeting an aggressive 1.5 percent reduction in cost of goods sold (COGS) for 2013 in an effort to drive margin growth, according to a new study from The Hackett Group Inc.
The study found that with GDP growth stabilizing in major regions of the world, manufacturers are expecting less uncertainty in sales forecasts, enabling them to plan supply requirements and manufacturing capacity with far greater confidence. The Hackett Group's research showed that companies are taking advantage of this stability by looking inward for cost reduction opportunities and other improvements, turning to strategic sourcing, improving their operations, and optimizing their supply chain networks.