The WHAT | Thefour pathways approach to assessing cost transformation More on this topic in the following Pathways can go together: in Executive Perspective parallel or sequentially ORG STREAMLINING DIRECT/INDIRECT OPERATING MODEL AND FULL STRATEGIC OPS MATERIALS OPTIMIZATION PROCESS REDESIGN TRANSFORMATION Samplelevers: Sample levers: Sample levers: Sample levers: Spans and layers, simplification, Demand mgmt., make or repair (De)centralization, tech Strategic sourcing, digital supply consolidation/scale, redundancy or buy, variance reduction, landscape simplification, shared chain, production efficiency, elimination contract management (including services, lean process, design to value for tech and digital suppliers) automation, digitization of d. processes veer esr ights l r Support Support nonlabor costs Support labor Support nonlabor . Al print labor costs optimization print reduction print costs optimization print costs reduction roup y s y s y s y s G ting ver Direct ver Direct nonlabor costs ver Support nonlabor ver Direct nonlabor sul o labor costs optimization o reduction o costs reduction o costs reduction Con disc disc disc disc ton osB Direct labor costs Direct labor costs by 2 alue V Value Value Value 202 optimization optimization © ight 13 opyrC