1、Cover gorodenkoff/iStockCFO perspective 2025How your operations functions can increase your financial leeway for 2025 May 20252CFO perspective 2025CFOs face mounting economic pressures as sluggish Eurozone growth,geopolitical tensions and shifting fiscal policies create uncertainty.US-China trade fr
2、ictions and potential policy shifts amplify cost risks,demanding financial flexibility.To navigate this landscape,CFOs must optimize liquidity,enhance resilience and secure strategic cost efficiencies to sustain stability.In search of financial leeway in 2025,CFOs can adopt a structured,lifecycle-ba
3、sed approach instead of relying solely on traditional P&L analysis.This approach offers a clearer view of cost levers,including R&D and product costs in early development,direct material costs in series production,investment decisions,indirect expenses and working capital efficiency.The potential fo
4、r cost reduction varies by lifecycle stage,with development and product cost reductions offering 5-15%potential,investment reductions 10-20%,SG&A and indirect material cost reductions 5-20%,and working capital reductions 8-15%.The impact on EBIT and cash flow varies,with implementation complexity ra
5、nging from low to moderate.This article explores the mechanics of each lifecycle stage,and the different spins CFOs can employ to optimize organizational costs.Cross-functional collaboration in R&D,procurement,production,and supply chain is essential to identify inefficiencies,optimize cost structur
6、es,and enhance supplier negotiations.A CFO-driven,data-backed approach ensures alignment between financial goals and operational execution,enabling focused initiatives with measurable performance gains.Management SummarySource:Roland Berger3Navigating 2025Economic pressures&opportunities for CFOs in