Realize immediate and definable savings
In today’s hypercompetitive and volatile market, companies across the technology value chain need to reduce cost to optimize margins:
- Device manufacturers must squeeze out cost savings earlier rather than later in the product cycle. It’s no longer good enough to achieve 2-4% cost reductions on future production runs. Assessing cost/performance trade-offs in the specification/architectural design phase is critical.
- Suppliers have little motivation to quote aggressively early on in product design, especially when a competitor’s products may be made in the same factory. Getting confidential supplier pricing in the ideation phase without jeopardizing loss of your competitive ideas is critical.
- Procurement professionals must weigh cost when they purchase large volumes of electronic equipment or components. With a data-driven understanding of device costs and vendors, purchasers can gain a lucrative advantage in buying negotiations.
- Component suppliers face regular declines in pricing now that the high profit margin era of the past several years has ended. Identifying high margins opportunities in areas such as the automotive, industrial and medical industries is critical.
Key benefits when cost benchmarking is applied as a continuous methodology and process:
- Gain an average of 5-15% in cost savings
- Get hard-to-find competitive intelligence
- Make informed cost and product design trade-off decisions
- Reliably predict product costs
- Strengthen your procurement negotiating leverage
- Anticipate supply constraints and track pricing trends
Learn how companies use cost benchmarking to stay ahead of their competitors.