While incremental savings can be made through supplier negotiation, offshoring, or part substitution, delivering more radical outcomes after these avenues are exhausted is more challenging. We believe cost reduction should be positioned as an aspect of portfolio and solution innovation.
Since cost reduction is one of many priorities for product development, a trackable process is required to identify, validate, and maintain a pipeline of opportunities across the portfolio. New solutions need to get to market quickly, with manufacturers adapting to everchanging omnichannel possibilities to engage both new and existing customers.
Applying innovation principles to cost reduction activity delivers better product margins without compromising the consumer experience. This whitepaper outlines key aspects of our value engineering process which identifies radical opportunities to reduce costs while keeping consumer, regulatory, technical, and manufacturing requirements in sight.
