Translated into Spanish from the article originally published on the Monte e Freitas website
After several attempts to decide how to begin this article, and given that there is no particularly pleasant way to tackle the subject, I think it’s best to get straight to the point. From last year to this, volatility has ceased to be the exception and has become the norm. Retail and distribution are facing mounting pressures. The dreaded tariffs are having a lasting impact, supply chains are unstable, consumers are exhausted by the rising cost of living, and margins are increasingly squeezed.
The data is clear: according to recent international studies, the 2025 tariffs have driven up the prices of imported goods (by more than 1%, according to the Bank of Portugal) and even of domestic goods in import-intensive sectors. So far, only a fifth of this impact has reached the consumer. The rest is being absorbed by suppliers and distributors, squeezing profitability and undermining investment capacity. In other words, entire sectors are in survival mode and not focused on winning.
The reality is not encouraging, but it has been condensed into a single paragraph. I dedicate the following paragraphs to solutions, because there is no point in lamenting. Faced with this scenario, the recurring question I am asked is: how can we reduce costs? However, the question should be a different one: how can we build structured, permanent resilience that generates margins?
How? Let’s get to it.
The answer lies in completely rethinking the way cross-functional costs are managed. It is not about making ‘blind’ cuts, but about freeing up internal resources so that teams can focus on what matters most: generating value at the heart of the business. When companies continue to manage dozens of non-strategic categories on a daily basis — such as energy, maintenance, logistics, consumables, telecommunications and many others — they lose focus, time, execution capacity and, at the end of the day, growth and revenue.
Our day-to-day experience in the field tells us that a large proportion of organisations operate with structures and processes that no longer reflect current demands. Contract review cycles are too long, suppliers are not the most capable, and visibility into the true cost per category is often limited. In the current climate, we recommend shorter renegotiation cycles, greater monitoring of cost drift and a more granular approach to risk. The reality in a nutshell: most companies continue to operate using models from the past and are losing efficiency and money with every passing day.
Today, reducing costs intelligently means rigorously mapping exposure to pricing and external volatility, something many retailers still do not do with the necessary level of detail. It means renegotiating based on data, not on perceptions or outdated records. Diversifying suppliers, not only geographically, but also in terms of operational risk. Integrating systems that enable a real-time view, essential for adjusting margins and prices in shorter cycles and transforming supplier management into a continuous discipline rather than a purely reactive one.
Nevertheless, as I often say, the crucial point is this: when companies outsource the management of cross-functional categories, they free up tens, hundreds or, in some cases, even thousands of internal hours per month. Time that should be directed and focused on the customer, on innovation and on differentiation.
In a year expected to be marked by more price-sensitive consumers, persistent inflationary pressures and unpredictable trade policies, it will be resilience and strategic focus—and not just cost reduction—that will distinguish the winners from the survivors.
