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Restoring Cost Transparency
Applying Cost Regression Analysis to the Consumer Packaged Goods Industry
© A.T. Kearney 2008

Cost Regression AnalysisConsumer packaged goods companies are facing a paradox: an abundance of increasingly individualized products is driving top line growth, while the complexity of such products is obscuring cost transparency. Adding a new product size, formulation or line extension adds cost - but exactly how much? Companies have introduced an unprecedented level of raw material and packaging complexity into their procurement and manufacturing processes - and made managing upstream costs significantly more difficult.

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