Delivering Target Costing for a global Tier-1

Competition has been threatening margins of most firms in recent years – and every euro saved matters. In this situation, it is the quality and comprehensiveness of the approaches used that makes the difference.

See how we can help to make a difference by injecting best-in-class thinking combined with unique technological capabilities.

Managing costs is one of the major challenges in every sector to increase performance. Our client was faced with:

• Increasing business loss to competition
• Increasingly enforced price reduction from customer
• Technical maturity and pricing of product could not keep up with competition

The team delivered the following milestones:

• Product cost- and functional benchmark of competitor
• Development of a catalog of commercial and technical measures based on benchmark results and best practice greenfield approach
• Support of complete product redesign and realization within three years

The new approach toward target costing delivered substantial benefits for our client, i.e.

• Sales volume increase by 30 percent
• Profitability improvement of 10 percent
• Sustainable competitive advantage achieved by a new product design

Working with the most qualified TSETINIS - EFESO Consultants is key to your success.

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

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