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Product Cost Reduction
We help you save the overall expenses, with our deep and thorough understanding of your business goals, product requirements and supplier capabilities.
What can you expect from our solutions
Be it a PCB stencil, a testing fixture, sophisticated labor cost breakdown or value-added tax refunding rate, our product cost analysis experts help you identify and propose how you can save.
- Costed bill of materials (BOM) analysis and recommend alternative sources
- Non-recurring engineering (NRE) cost reduction analysis and proposal
- Purchase price variance (PPV) reduction analysis and proposal
- Testing equipment and solutions cost reduction analysis and proposal
- Production idle cost reduction analysis and proposal
- Customer's liability cost reduction analysis and proposal
- Materials risk buy list analysis and proposal
- Excess and obsolete (E&O) cost review
- Value added margin (VAM) review
How we work together to win together
We work closely with you, share what we know, and get you exactly what you're looking for.
1. Understand project and product requirements
2. Engineering requirements study
3. Propose cost estimation
4. Make cost benchmark report, and propose cost-reduction opportunities
You asked, we answered
My product is still in the design stage, can you do the cost estimation for me?
Yes, we can.
Fill in the form to let us know your needs.
Please be noted the cost analysis result can be regarded as reference only when there is no design or business term change. If you want to keep it as accurate as possible, it’d be better to estimate the cost after design locked and terms fixed.
How do you do the cost analysis?
Generally, we do in-depth study of collected info, understand product specification details, functionality & reliability, critical quality requirements, etc.
Then we conduct thorough technical and commercial analysis of cost breakdown with our should-cost system, benchmarking and comparing suppliers’ quote, in order to locate cost reduction opportunities.
My contract manufacturers also do cost analysis for me, what’s the difference between yours and theirs?
Contract manufacturers normally add “mark-up” into both materials prices and labor, overhead cost, NRE cost since they need to gain profits there.
We’re your independent consultant, with no subcontracting PO relationship with suppliers. Therefore, we provide you with “should-cost” recommendations without any “mark-up”, and you’ll master cost breakdown on your own.
Will you consider China local electronics component distributors? Since their prices are mostly more competitive.
Yes, we don’t limit our supplier source options, and China’s local electronics components distributors will be one of them as well.
However, the first step we should do is to check with you if there are any concerns.
Can you recommend 2nd source or alternative suppliers to me when you find components/ materials cost reduction opportunities?
Yes, and the cost reduction opportunities will be highlighted. Go to Critical Component Sourcing for further support if you need.