Calculation from a single source

An automotive manufacturer (OEM – Original Equipment Manufacturer) creates detailed bottom-up product cost analyses of its entire portfolio in order to systematically optimize overall costs.

Analysis of selected high-volume products reveals a potential saving of around 17% for door bodies. This insight is crucial for targeting cost reductions, passing on savings to customers, and at the same time preventing buyers from opting for cheaper competing products from China.

A purchasing company analyzes supplier prices using should costing. The aim is to create transparency about the actual cost drivers and to be able to track the manufacturing costs of razors.

On this basis, price negotiations can be conducted in a fact-based manner. The supplier had increased its prices by around 20% annually, citing rising energy prices as the reason. However, the analysis shows that energy costs actually have a comparatively small impact on product costs.

One company develops innovative garage doors and conducts a cost assessment at an early stage of product development.

Design and material alternatives are simulated in order to control costs in a targeted manner and avoid subsequent economic problems before going to market.

Other companies have neglected this step and quickly realized that around 80% of product costs are already determined during the development phase. Even with subsequent product adjustments, it was difficult for these companies to position themselves successfully on the market in the long term.

A manufacturing company evaluates the economic efficiency of its in-house production. An analysis tool is used to calculate full costs and compare actual production costs with benchmark values.

Deviations provide company management with important decision-making information. Companies that do not carry out this comparison often find that their products are no longer selling sufficiently well and subsequently invest considerable budgets in marketing measures.

It could have been recognized early on that modern production lines on the market produce at significantly lower costs and that competitors can offer their products at correspondingly lower prices.