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Cost Benchmarking Solutions

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

Cost Benchmarking Solutions Videos

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Customer Testimonials

"Through working with the IHS Markit cost benchmarking team, we were able to reduce our cost by $200 million in 2018."
- Director of value engineering, leading cloud services provider

"IHS Markit cost benchmarking services have been an integral part and supplemental to our value engineering efforts. Through our collaboration with IHS Markit, we realized savings of more than $50 million in the first year."
- Director of value engineering, leading consumer products company

"We saved $63M last year on increased transparency into our supplier’s cost structure."
- Buyer at a retailer with over 2,000 locations

Why IHS Markit?

Unmatched teardown experience Analysts access and collaboration Internal and external data partnerships

The industry’s deepest and most comprehensive teardown experience – identifying components, revealing pricing, and seeing how new technology is implemented provides you with the most insightful device and component understanding.

When you need to understand the context behind a forecast, price, data point or have another inquiry, we have analysts who can answer your pressing questions. Their daily collaboration allows you to track the pulse of the market in real time.

IHS Markit is a hub of vast information, from raw materials pricing, shipping movements and country labor rates tracking, to price tracking. Our experts are able to access and leverage these data sets and analyst research to support your cost benchmarking needs.

Cost Benchmarking Solutions

Determine product competitiveness

We help you compare your design and costs to those of your competitors, assess similarities and differences, and implement optimal solutions.

Physical Teardown
A “teardown” is the disassembly of a device to determine what its components should cost. This powerful cost benchmarking tool helps you identify which components and features are needed in your device and how much those devices should cost.

We routinely perform teardowns on the following device types, but we also offer custom teardowns to meet customers specific needs:

  • Automotive electronics
  • Mobile handsets
  • Tablets/readers/notebooks
  • IoT/medical/wearable devices

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Protect your IP and product roadmap

With our early and accurate cost estimation, you can mature your design before exposing it to the same global EMS base used by your competitors (or counterfeiters).

Virtual Teardown BOM Analysis
Leveraging all IHS Markit pricing research areas, our Bill of Materials (BOM) Analysis is designed specifically for your parts list, determining best price ranges for all your matched manufacturer part numbers (MPN). Know the “true” price range and where you fit, quickly, accurately and confidentially.

Improve negotiation power

We help you see into your supplier’s cost structure and use that insight for bargaining power in your procurement negotiations.

Strategic Procurement Services
Strategic Procurement Services (SPS) provide custom analysis beyond the numbers to companies that need scenario-specific support tailored to their unique needs.

The service includes an OEM assessment with extensive research into your supplier, uncovering critical insights for negotiations:

  • Operational performance
  • Financial strengths and weaknesses
  • Competitive landscape
  • Revenue vs. margin tradeoffs
  • Phase of lifecycle
  • Additional levers based on your situation

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Mitigate pricing and shortage risks

Keep pace with availability and pricing trends for the components you use.

Component Price Landscape
Through a unique combination of contract pricing, lowest distributor pricing and lead times, the Component Price Landscape (CPL) delivers lead time and pricing forecasts for 42,000+ manufacturer price numbers (MFNs), representing 404,000+ components that are used in a wide variety of electronic devices.

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Learn more

Validate pricing worldwide

Quickly and easily assess your component purchasing performance.

Component Price Benchmark
Powered by Lytica, our Component Price Benchmark (CPB) solution provides benchmark analysis of component prices and your spend against companies buying what you are buying. Our user-friendly tool uses a database of millions of current electronic component prices for over 9,000 manufacturers so you can assess your buying performance by commodity.

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Is IHS Markit Cost Benchmarking worth it?


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