The Bill of Materials cost reduction services offered by PCS are often organized by industry connoisseurs.
“Our product is too expensive!” – Who hasn’t heard this comment from sales teams?
Most companies have at some point of time been in the uncomfortable position of knowing that their product isn’t competitively priced for the marketplace.
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 (LCC) sourcing 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 Bill of Materials cost reduction service uses a multi-staged process that is defined based on the level of flexibility each customer might be willing and able to implement.
Our approach is to do an in-depth analysis of the Bills of Materials to identify cost reduction options, including:
Generating savings from purchase consolidation
Identifying lower cost alternates
Using Low Cost Country (LCC) sourcing
Analyzing current buying prices to spot abnormal procurement prices
We provide environmental compliance training in collaboration with strategic partners across the globe, either at the client’s site or online, to educate organizations on compliance. The training sessions typically cover several areas, such as basics, implementation, road map, planning, and best practices and give an overview on how to utilize compliance to strategic business advantage.
The training is usually provided to:
Clients’ internal teams that need to be educated on the implications of the compliance initiative and how this would affect their functional area, be it engineering, supply chain, sourcing, manufacturing, quality or other key functional areas.
Suppliers who need to be updated about their data disclosure obligations related to compliance and to guide them on how they can get compliant.