Operational performance: controlling costs in the African context

In many sectors, the difference between a profitable business and a fragile one is not decided by the selling price. It is decided by the ability to produce, deliver and serve at a controlled cost. For companies in Côte d’Ivoire, the DRC and across the region, this challenge takes on a particular dimension.

The constraints are well known: uneven logistics infrastructure, long and sometimes unpredictable import lead times, energy costs and power outages, spare parts that are hard to source, scarce technical skills. They weigh on costs. They are not inevitable. Companies that build them into their organization, rather than simply enduring them, create a lasting advantage.

Know your real costs

The first step is often the most neglected. Many companies know their total cost, but not how it breaks down by product, site, customer or activity. Without that visibility, cost-cutting efforts land at random, sometimes on items that barely matter.

A useful analysis answers precise questions. What does an inland delivery really cost? What is the cost of one hour of downtime on a critical piece of equipment? What share of total spending goes on penalties, emergencies and express shipping?

Logistics and procurement: anticipate rather than react

When transit times are long, every stockout is expensive. It forces emergency orders at higher prices, with extra freight costs. Conversely, excess inventory ties up cash. The right balance is built item by item.

• Classify your items by criticality and lead time. Not all of them warrant the same level of safety stock.
• Review your replenishment parameters regularly, instead of reordering the same quantities out of habit.
• Measure the reliability of your suppliers and freight forwarders: on-time delivery and order accuracy.
• Consolidate orders where possible to reduce transport and customs clearance costs.

Maintenance: an underestimated lever

In equipment-intensive businesses (manufacturing, mining, transport, construction, agribusiness), maintenance weighs heavily on profitability. An organization that works mainly in breakdown mode suffers unplanned stoppages, more expensive repairs and shorter equipment life.

Moving from reactive to planned maintenance takes rigor: a history of interventions, maintenance plans that are actually followed, equipment condition monitoring and availability of critical parts. The return shows up in machine availability and avoided costs, even if it is not always visible in the first few weeks.

Productivity: look at the shop floor

Productivity is rarely won through decisions made at head office. It is won on the ground, by observing how work actually gets done. Waiting time between tasks, unnecessary movement, re-keying data, multiple approvals, ill-suited tools: these losses are often invisible in reports. They become obvious when you spend a day in a workshop, a warehouse or an administrative department.

Involving teams is essential. They know the pain points. They are the ones who will sustain improvements over time.

A simple framework to move forward

1. Measure: choose five to seven key operational indicators and track them every week.
2. Understand: identify the causes of variances rather than treating the symptoms.
3. Improve: launch targeted actions, each with an owner and a deadline.
4. Standardize: formalize good practices so they do not depend on a single person.
5. Repeat: operational performance is an ongoing discipline, not a one-off project.

Questions to ask yourself

• Do we know the full cost of each of our products or services?
• What share of our spending comes from emergencies that could have been avoided?
• What is the availability rate of our critical equipment, and do we track it?
• Is our inventory sized according to criticality and actual lead times?
• When did we last spend time on the ground observing the work?

Build it, line by line

Cost competitiveness cannot be decreed. It is built, line by line, with reliable data and a disciplined organization. A structured operational diagnosis helps identify the few levers that really matter, before effort is spread too thin.