The support, commercial and central functions are critical to the effective running of a company. These include, but are not limited to, finance, HR, trade and marketing, procurement, R&D and IT. Beyond operational support, these functions contribute to the development of the company, its performance, sometimes its strategy, and compliance for the most regulated functions.
Principles of SG&A
According to our benchmarks, the total cost of these functions, commonly known as SG&A (selling, general and administrative expense) is generally between 6% and 20% of turnover, depending on the sector and the functions’ maturity.
If a reduction in SG&A expense improves a company’s profitability, it is the quality of services delivered that creates value: the quality of financial performance management by finance, talent management by HR, optimization of supplier relationships by procurement, innovation by R&D, increased productivity through IT systems, and in particular sales generated by the marketing and sales teams.
When looking to increase its competitiveness, the challenge for a company is to optimize its SG&A structure through improved performance, using digital initiatives and optimizing resources.
Helping with SG&A challenges
Our team of SG&A consultants dig deep to identify the root of complex problems and focus on delivering tangible results for clients. The menu bar on this page provides more detail on a selection of the SG&A challenges we regularly work on.
We apply a combination of technical expertise, operational experience, business knowledge and common sense to help our clients solve SG&A issues and deliver lasting results. Our positive, flexible and personal approach, with challenge where needed, ensures buy-in at all levels of our clients’ businesses and a positive outcome. Learn more about us here.