Cost Reduction Services

BOM Cost Reduction Analysis can deliver significant savings to clients, enabling them to improve sales and margins.

“Our product is too expensive!” – Who hasn’t heard this comment from sales teams?

Most companies at some point of time have been in the uncomfortable position of knowing that their product isn’t competitively priced for the marketplace.

Our BOM Cost Reduction Analysis Services Includes

And in many cases, the Bill of Materials is where the problem lies, since that is usually the single largest cost element in the product. Several factors may cause Bill of Materials’ cost inflation, such as:

• Technology improvements reduce component costs and that advantage is leveraged by the competition.
• ‘Hi-speed’ product launches do not provide enough time for component cost optimization.
• Multiple divisions or locations of a company buy the same parts using different internal part numbers at different prices.
• Low Cost Country Sourcing (LCC) is not thoroughly evaluated.
• Component suppliers may have reduced costs but may not have passed on the benefits.
• Mergers and acquisitions may create purchasing trends that are inefficient.

Our BOM Cost Reduction Analysis Solution Provides

Our Bill of Materials cost reduction service uses a multi-staged process that is defined based on the level of flexibility that each customer might be willing and able to implement.

Enventure does in-depth analysis of the BOM to identify cost reduction analysis options, including:

• Generating savings from purchase consolidation
• Identifying lower cost alternates
• Using Low Cost Country Sourcing (LCC)
• Analyzing current buying prices to spot abnormal procurement prices