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Boston Consulting Group (BCG) interviewed more than 570 executives across different regions and industries to identify the strategies shaping their business priorities for 2025. Despite differences between sectors, the global strategic consultancy found that for most CEOs, cost management will be crucial for driving productivity.
Instead of having consumers shoulder costs, in 2025, executives are paying close attention to efficiency in their core operations. This includes supply chain optimisation and aspects such as product portfolio simplification. According to BCG, companies that align their spending with agile management achieve lasting cost reductions, up to 11% higher. These professionals also see technologies such as generative artificial intelligence (AI) “as a pillar for efficiency, with 86% planning to invest in AI and advanced analytics in 2025”.
Although the businesses surveyed plan to transform their cost management, there is no single approach to how they should do this. Every organisation must develop a strategy centred on areas that strengthen its competitive advantage in its sector.
In view of this, fast-moving consumer goods (FMCG) companies are focusing on supply chain optimisation. Meanwhile businesses in the insurance, technology and finance industries are streamlining their product portfolios and reviewing their customer service operations.
With the emphasis on supply chains, CEOs recognise storage, logistics and transport as areas that could help maximise profits. As a result, they are exploring levers such as warehouse automation and digitalisation while renegotiating capacity and rate agreements with suppliers. Additionally, they are aiming to reduce rush shipments and consolidate transport routes.