Delivering Target Costing for a global Tier-1

Competition has been threatening margins of most firms in recent years – and every euro saved matters. In this situation, it is the quality and comprehensiveness of the approaches used that makes the difference.

See how we can help to make a difference by injecting best-in-class thinking combined with unique technological capabilities.

Technical disadvantages caused higher onetime and lifetime cost and could not keep up with product from competition

How we faced this challenge

The team delivered the following milestones:

• Product cost- and functional benchmark of competitor
• Development of a catalog of commercial and technical measures based on benchmark results and best practice greenfield approach
• Support of complete product redesign and realization within three years

Major levers used in the 3 years program

Sustainable long-term competitiveness – delivered!

The new approach toward target costing delivered substantial benefits for our client, i.e.

• Sales volume increase by 30 percent
• Profitability improvement of 10 percent
• Sustainable competitive advantage achieved by a new product design