Win-win for you and your suppliers
Price improvements, cost engineering and technical matchmaking are the big levers for bringing moon prices back down to earth, uncovering hidden cost eaters and protecting yourself from supply bottlenecks.
As a rule, Kloepfel Consulting’s triangle of success results in savings of between 12 and 50 percent. Not only you do win, but your suppliers do too.
Price improvements: Savings of between 3 and 9 percent
The first lever is price improvements in strategic purchasing. The Kloepfel team compares and negotiates prices to identify savings. For direct costs, this amounts to 3 to 6 percent. And for indirect costs, the savings amount to 4 to 9 percent.
As a buyer, you also need the second lever, cost engineering, and the third lever, technical matchmaking. This involves eliminating unnecessary costs, for example in the use of materials or manufacturing processes.
Cost engineering: savings of between 20 and 50 percent
Our cost engineers often encounter purchasers who would like to work together with the design and production departments to consider whether their own products can be manufactured more cheaply than before. For example, by saving on materials or rethinking costly or sub-optimal production processes – keyword “production-oriented design”. Kloepfel’s cost engineers also investigate whether and how suppliers can manufacture their products more cheaply. By optimizing their product costs, suppliers can then also reduce their prices and improve their margins at the same time. A win-win for both sides.
The cost engineers usually uncover hidden savings of between 20 and 50 percent in your product costs and those of the suppliers.
The more steps a product requires to be manufactured, the more cost drivers and therefore savings opportunities the cost engineers will find.
Together with you, we break down your (purchased) products into their individual parts and use our technical expertise and global databases to analyze how they can be manufactured more cheaply.
Technical matchmaking: savings of between 12 and 40 percent
It often happens that the existing supplier cannot manufacture a part cost-effectively according to the cost engineers’ specifications because it does not have the appropriate technology. This is where the technical matchmakers from Kloepfel Consulting come into play. With their manufacturing expertise, they find the suppliers who have the most suitable manufacturing processes, machines and tools for this specific requirement. In this way, specifically requested parts can be produced more cost-efficiently and at a lower price than is possible with competing suppliers.
Our technical matchmakers not only make you happy, but also the suppliers. Because, while you benefit from the savings, the supplier can optimize its margin by offering the right part with the right production technology at a lower price than its competitors, despite a profit mark-up.
In contrast, suppliers who do not specialize in the desired product are usually significantly more expensive, as they lack the necessary production technology. Nevertheless, they sometimes try to produce the requested product in order not to lose the order or to keep their capacity utilization high.
There is often a lack of capacity
But where the will exists in purchasing, there is often a lack of time. The holistic identification of cost drivers in your own and purchased products is a major undertaking and requires manpower coupled with the necessary technical know-how.
This is where the specialists at Kloepfel Consulting come into play: they have the knowledge, the tools and the global supplier databases to work with you to identify and leverage the hidden profits in your products.
Get to know us and book a potential workshop to develop a plan with your ideas and wishes to guide your company safely through these turbulent times.
Book a “Success Triangle” workshop
Contact:
Kloepfel Group
Christopher Willson
Tel.: 0211 941 984 33 | Mail: rendite@kloepfel-consulting.com