Manufacturers that embrace the concept of the network effect, and extend their enterprise cost management platform beyond their internal product organizations to their strategic supplier community can reap numerous and significant benefits, including:
- Faster time to market by receiving quotes on early designs in a fraction of the time it takes today.
- A greater percentage of products and parts that are cost optimized.
- Increased product profitability.
- Less post-launch or late-state rework.
- Enterprise cost collaboration—a common view of cost and a consistent, repeatable costing process.
- Increased corporate cost competency by capturing and institutionalizing an understanding of design and manufacturing cost drivers.
Some of you already actively manage new product initiatives to target cost, engage in more informed make vs. buy decisions, analyze spend across entire commodities for outliers and maximize savings on redesign projects. You are ahead of most of your competition. But, if you want to maximize the full potential of your product cost management efforts and fully capitalize on the network effect:
- Connect all the constituents of your product development team—from the earliest stages of product design through sourcing, cost engineering and manufacturing on one enterprise product cost management platform.
- Integrate your enterprise product cost management system to your other critical enterprise applications—ERP, MRP, SCM and PLM—to aggregate all information related to product cost under one core platform accessible by all members of your product development team.
- Extend your enterprise product cost management system to your strategic suppliers so that your entire value chain works in the most time and cost-efficient manner possible.
Julie Driscoll is the vice president of strategic marketing and product management at aPriori, Inc. She is responsible for aPriori’s strategic product and marketing direction, and has a keen eye for identifying new product cost savings opportunities for discrete manufacturers.