CASE STUDIES

Results: 10% saving / £900k.

A prominent pharma client engaged us to achieve cost reduction for their auto-injector device. We conducted a teardown of a sample unit, and the client provided component drawings to aid our analysis. We performed should cost estimates for each component and sub-assembly, exploring both commercial and technical ideas for value engineering. 

Results: 

We identified a 10% cost saving potential, which translates to £900k in savings at peak annual volume. Our client's procurement team, known for their confident negotiating skills, benefited from our 'should cost' insights, allowing them to develop a robust negotiation strategy.

Results: 20% saving / £30 million.

An automotive client engaged us to implement product cost optimization for their innovative EV motor unit. We conducted a virtual teardown using CAD models and component drawings. Through this process, we performed should cost estimates for each component and sub-assembly, examining both commercial and technical ideas for value engineering.

Results:

We identified a 20% cost saving potential, translating to a £30 million saving at peak annual volume. Our efforts supported the initial fact-based supplier negotiations, yielding £5 million in commercial savings. The client’s team was then tasked with delivering the remaining savings.

An industrial client engaged us to support their complex make vs buy study focused on cost reduction. The client was producing electronic displays in-house in the U.S., but the majority of their customers had shifted outside the U.S., which was squeezing profit margins. They needed to evaluate the best manufacturing location while considering hybrid options to retain some U.S. operations. We held virtual workshops to discuss and identify potential scenarios for product cost optimization. We developed a complex cost model for five identified scenarios (options).

Results:

We presented five options and associated cost models to the client’s executive team, from which the best option was selected. We identified potential subcontract electronic manufacturers and modelled cost savings using detailed RFI data, incorporating value engineering principles. The recommended option projected $6 million in savings, significantly improving profitability and global competitiveness.

Results: 10%+ saving / £20 million.

We supported a leading automotive client aiming to reduce costs by at least 10% across systems such as instrument panels, trims, and seats. 

We deployed multiple workstreams including idea generation workshops, should cost modelling and commercial fact-based negotiations with incumbent suppliers.

Results:

 We implemented cost-saving ideas achieving over 10% savings per system (~£4 million annually per system), with additional opportunities already identified and ready for implementation. 

Results: £3.5 million.

A multi-national industrial client engaged us to achieve cost reduction in their metals category through effective product cost optimization. The company had similar suppliers in each region, which presented an opportunity for value engineering. We followed our 4-step commodity cost reduction process. 

Results: 

The project delivered £3.5 million per annum in recurring savings. New suppliers were onboarded in low-cost regions, while poor performing suppliers were identified for elimination. Incumbent suppliers were motivated to offer price reductions in response to our should cost analysis and feedback.

Results: 26% saving / £90k.

An industrial client engaged us for product cost optimization to reduce the cost of a valve with limited supply options. We conducted a teardown of a sample unit, despite the absence of available drawings. Our team performed should cost estimates for each component and sub-assembly, focusing on value engineering strategies.

Results:

Through our analysis, we identified a 34% cost saving potential, equating to £120k in savings at peak annual volume. We led a fact-based supplier negotiation, achieving an impressive £90k in commercial savings.