Asset Productivity: Converting Assets Into Profits

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This paper presents A.T. Kearney’s perspective on the importance of asset productivity. It begins with an in-depth discussion on how good asset performance can increase shareholder value, drive profitable growth, help smooth an M&A and impel cost leadership. We then outline a three-dimensional approach to improving asset productivity. Rather than a typical patchwork-quilt solution, the approach is all-inclusive-looking at all aspects of the global firm; across sales, operations planning, operational efficiency and asset structures. Finally, within the approach is a discussion of best practices to enable companies to get higher productivity from existing assets and rationalize excess capacity – thereby helping to improve overall costs and aligning industry capacity with demand.

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