PROCESS & COST ENGINEERING
Product cost optimization
CHALLENGE
- Distributed responsibilities for cost improvement projects across functions
- Missing accountability and controlling of implementation results
- Presence of a mix of different methods & tools
SOLUTION
- Transparency of all cost optimization projects & financial effects
- Setup of cross-functional team with dedicated responsibility and resources
- Utilization of proven tools (e.g., cost structure anaylsis)
Improving the cost position of any organization has become a competitive advantage in the market. etronixx is a proven partner in developing a strong PCO organization with clear responsibilities, accompanied by specialized partners to utilize proven tools as new standard processes.
CAPEX 75
CHALLENGE
- Investment costs are rising with output performance in a 1:1 ratio
- No standards & tools available to realize cost reduction potentials in CAPEX
- Missing transparency of cost breakdown for CAPEX
SOLUTION
- Building up cross-functional responsibility for CAPEX
- Structured approach to drive transparency as basis for improvement
- Concrete implementation projects to turn theory into reality
For most growing organizations, increasing output at the same time means growing CAPEX spenditures in a fixed ratio. Competitive price advantages can be realized through a structured approach to „make expenditures everyone’s business“ and implement transparency and improvement processes that allow for a 25% reduced ratio of CAPEX spent for every unit of output.
PROCUREMENT PERFORMANCE
CHALLENGE
- Extending the focus from spend to value management
- Managing risks in the whole supply chain
- Attracting & retaining talent (digital experts, strategist)
SOLUTION
- Strategic supplier management (e.g., partnerships, front loading innovation)
- Product cost optimization / cost engineering program
- Digital procurement platform & tools (e.g., configurator, dashboard)
For many companies, procurement is responsible for a high share of value add. Therefore, procurement needs to take place in the driver seed to set the pace for the entire value chain, from supplier to customer. For this, there are various opportunities for improvement and mindset shift: supplier development processes, local sourcing, quality improvement programs, strategic supplier partnerships, etc. With a holistic view and a structured approach, procurement can set an example for the whole organization.
