AVENCORE advised a recreational vehicle manufacturer preparing to launch a product targeting a new market segment already addressed by competition.
To improve competitiveness, our client was looking into optimizing their supply chain, to make it more flexible and reach a target production cost in line with marketing requirements.
After a reverse costing survey of competitor products, our teams conducted a should-cost analysis to evaluate the level of cost reduction necessary: 10% was required to be competitive.
One of the key areas of focus was purchasing costs (pricing and procurement lead time). AVENCORE’s global footprint allowed us to identify 15 new suppliers worldwide. This resulted in an 11% cut on production costs.