Simplifying your industrial business

During the last decade, the underlying complexity of many Industrial Manufacturing companies was hidden by a relatively stable business environment. For many, the economic downturn challenged the core operating models responsible for delivering the business strategy. Instead of being equipped to cope with the challenges, they found their operating models and systems too complex to enable the flexibility and efficiency needed to deliver business strategy in an uncompromising market.

As we look to the future, successful manufacturers will be those who shift focus from short-term cost reduction programmes to wider structural and transformational change initiatives. With immediate survival assured, the priority is to ensure that the organisation is agile and future-fit. As many are finding, business model simplification has a vital role to play.

The benefits of strategic business simplification include enhanced flexibility, greater tax efficiency and long-term cost control – all essential qualities for high performance and sustainable success in a fast-changing market-place.

In Simplifying your industrial business, we share our views on reducing the legal entity footprint and achieving sustainable cost reductions and efficiency gains through a closer alignment between a simplified management model and simplified legal structures.

How PwC can help

Business complexity shows itself in many ways:

  • high compliance costs
  • overlapping management structures, duplicate back office functions
  • significant non value add administrative burden and high internal “cost of doing business”
  • tension between regional business priorities and local entity obligations
  • sub-optimised tax structure

PwC can help you to identify and address the causes of complexity through our industry tailored services in corporate simplification, which include simplifying statutory reporting processes, operating/management models, legal entity structures, and business models for tax optimisation.