Manufacturers of high tech electronic equipment, including computing & peripherals, communications equipment and consumer electronics, all design and manufacture products with extremely high production volumes, often numbered in the hundreds of thousands or even millions of units. In these markets, managing cost across a supply chain that often extends across the globe, with many different times zones and many different languages is an extremely challenging task. Some of the greatest challenges these companies face include:
Rapid Product Obsolescence
Obsolescence places a high demand on a very fast product development, release, and manufacturing cycle. Manufacturers must hit cost targets at the initial release to market or risk a significant profit impact for the company.
Product Launch Delays
Complex supply chains make hitting new product launch dates challenging. Inefficient communication with component suppliers can lead to delays in release of final designs to contract manufacturers.
Supply Chain Negotiations
OEM sourcing teams have only a vague idea of what a new product design should cost. Most teams rely upon historical quotes and have minimal manufacturing data such as cycle time, assembly time, overhead, labor time, etc.
How aPriori Can Help
Product Cost Management (PCM) solutions provide a number of important benefits for fast-moving electronics companies and their contract manufacturers, including:
Improve Profits While Accelerating Time to Market
Automated costing helps you bring products to market before competition and quickly capture market share. Products achieve higher margins in the early periods of the lifecycle.
Attack Cost at the Point of Origin
Seventy percent of product costs are locked down in the early design phases. Cost drivers can be quickly identified and eliminated before errors are compounded downstream.
Implement a technology platform that provides a rich, consistent set of manufacturing data outputs that facilitate more constructive negotiations about processes and operations versus simply a cost value.