BCG on Operations

Amid mounting global pressures, from economic volatility and #geopolitical disruption to growing #supplychain complexity, labour and talent shortages, industrial #operations are entering a transformative new phase. At this inflection point, a new era of industrial automation is emerging, powered by physical AI: intelligent robotic systems that combine perception, reasoning, and action, enabling a level of autonomy and adaptability that marks a critical juncture in industrial automation. Our newly launched #whitepaper, developed through the World Economic Forum’s Next Frontier of Operations initiative in collaboration with Boston Consulting Group (BCG), builds on a tradition of strategic foresight and multistakeholder engagement to chart a bold path forward. Read the complete insights here: https://lnkd.in/gmj_kPDK Authored by BCG’s Daniel Kuepper and Theresa Sophie Wolf, and #WEF's Kiva Allgood, Devendra Jain, and Federico Torti.

In a complex #software environment, traditional approaches to #procurement are no longer enough. Companies that embrace innovative procurement practices and adapt to the evolving dynamics of software spending can improve their financial performance, reduce complexity, and equip themselves to compete more effectively. Read our newly launched article that features insights on how companies can spend smarter on software by focusing on three key priorities: https://lnkd.in/gVf4cNNB Authored by BCG's Ashwin Bhave, Hrishi Hrishikesh, Nitin Mathur, Tom Rapp, Elana Slater, and Piyush Bhandari.

Is your company AI-future built? Right now, 5% of firms worldwide are in this camp, while 35% are scaling #AI, beginning to generate value. BCG's Build for the Future Report for 2025 has found that 70% of potential value from AI is concentrated in core business functions such as sales and marketing, #manufacturing, #supplychain, and pricing. R&D and innovation alone account for 15% of the total potential value. Read the complete report to find out how future-built companies are distinguishing themselves by adopting five interlinked strategies: https://lnkd.in/dm6ugEzr

Even as #operational leaders around the world face pressure to improve #productivity, the most effective solution is already on the payroll: #frontline employees. BCG's research shows a clear correlation between frontline engagement and operational performance. To unlock this potential, companies need to increase engagement on the frontlines by changing how roles are empowered and led. Read our recently launched article for complete insights: https://lnkd.in/d9gqM8ss Authored by BCG's Paul Goydan and Julia Dhar.

We’re pleased to share that BCG’s Thomas Peddicord took the stage at this week’s National Association of Manufacturers - NAM Fall Board Meeting, joining industry peers to explore what lies ahead for the #manufacturing industry. Together with BCG leaders Karthik Valluru, Meldon Wolfgang, and Laura Juliano, Thomas represented us in discussions with industry leaders on the key priorities shaping the future of manufacturing, from harnessing the transformative power of #AI and building more resilient #supplychains to navigating an increasingly complex global economy. As a newly appointed member of NAM’s Board of Directors, Boston Consulting Group (BCG) is proud to advance NAM’s mission and partner with manufacturers around the world to accelerate innovation, strengthen resilience, and unlock sustainable, long-term growth.

According to BCG’s Build for the Future 2025 report, 70% of potential value from #AI is concentrated in core business functions such as sales and marketing, #manufacturing, #supplychain, and pricing. R&D and innovation alone account for 15% of the total potential value. Future-built companies are investing more, scaling faster, and seeing both higher #revenue and deeper #cost savings than peers who have stalled at the pilot stage. For organizations that feel stuck, our report offers a credible path forward: https://on.bcg.com/4nZT3xq

#GenAI helps #retailers regain an information edge with their #suppliers. It enables companies to rapidly synthesize vast amounts of data and generate actionable insights. When paired with modern AI-based tools, retailers can also automate planograms, #pricing, and other levers. In our newly launched article, we explore how rather than limiting GenAI insights to reducing #costs for a specific product category or vendor, retailers need to embed them across all merchandising decisions: https://lnkd.in/gSmgHdSV Authored by BCG's Jacqueline Martinez, Erin White, Nicholas Goad, and Jon Fahey.

For many companies, the largest share of #emissions lies upstream in their #supplychains. On average, Scope 3 emissions are 21x higher than Scope 1 and 2. Our latest analysis with EcoVadis identifies five actions that companies can take to manage their Scope 3 emissions—with #supplier engagement being the most effective. These actions are helping companies reduce emissions, mitigate future climate risks, and deliver strong ROI on #decarbonization investments: https://lnkd.in/dDTpHg6u To know more, contact our experts: Diana Dimitrova, Subhajyoti Ghosh, Mehran Q., and Maheen Bajwa.

Harshal Singh, a Principal in our Mumbai office, began his career discovering that #transformation takes shape in the smallest details of #operations. He’s drawn to the challenge of shaping bold strategies and turning them into operational reality, and has built deep expertise across the operations value chain—spanning product design, #costoptimization, #supplychains, and commercial execution.   Over the years, Harshal has led large-scale transformations across industries, helping companies achieve profitable growth by optimizing #costs and enabling faster, smarter execution. His strength lies in bridging strategy and execution—combining analytical depth, design sensibility, and operational insight to unlock lasting value. Reflecting on his journey, Harshal says: “From product conceptualization to commercial delivery, Operations at BCG is hands-on, deeply real, and transformative. I feel fortunate to partner with exceptional clients to drive change that truly matters.” #BCGOPSCommunity

Automotive #OEMs in Europe and North America face a massive challenge: slowing demand for new cars and light trucks has left them with excess #production capacity and #manufacturing #costs that are simply too high. At the same time, new competitors, including many based in China, are able to produce high-quality cars for about one-third the cost. BCG recently analyzed the cost gap between traditional OEMs and new entrants and identified four key areas in which the latter have the biggest manufacturing cost advantage. Read the full report here: https://lnkd.in/dqwnyuCW Authored by BCG's Dr. Kristian Kuhlmann, Michael Loibl, Robert Herzberg, and Felix Stellmaszek.