In an increasingly competitive global landscape, you need in-depth understanding of how your costs occur and what you are paying for. What may seem to be an advantageous agreement can lose its appeal when you see the full picture.
You may have the data, but can’t access it. Our consultants can uncover all the different layers that add up to your bottom line. Using cost orchestration you will be able to both save money and ensure better practices going forward.
You need a complete understanding of your CO2 footprint, from cradle to grave. Today’s companies can afford to have sustainability reporting that only covers half the journey.
With the help of your own data and independent sources we can chart your full CO2 footprint and other dimensions of sustainability. As well as calculating the real cost tied into this. With our help you will be able to make informed decisions that will affect both your sustainability record and your margins.
Are you relying on a limited number of suppliers, because they are the only ones that seem to fit your needs? That can both make you vulnerable and prove expensive.
We use Artificial intelligence and different data sets (including your own) to map all potential suppliers. Across the globe. With our help you can avoid stops in your supply chain, and ensure that you’re not paying more than you should.
To navigate in this highly complex ecosystem there are several strategic actions one fundamental is what we call Cost Orchestration. The discipline of orchestrating costs across multiple functions and stakeholders to establish a true cost blueprint. Once you have the cost blueprint the next step is orchestrating effectively to make significant saves and efficiency improvements. You have 4 different options:
Do it yourself
If you have the competence and software in-house this is a viable option.
The challenges we observe are that many companies in the industry don’t have know-how in-house to orchestrate costs around the 4 key orchestration cornerstones, what we call ACPE: Assessment (to understand the gaps), Calculate (software to manage the complexity), Plan and Execute operational excellence.
A viable option if you can find talent that masters ACPE. We observe that this is a scarce resource.
The second challenge is recruiting, onboard, and getting them fully operational is time-consuming. If you get the recruitment wrong you lose even more time which can be fatal given the urgency to orchestrate costs to be competitive.
Step 3: Buy/bring in Advisory
Bring in the expertise quickly and get the cost orchestration in place quickly. In-house employees can also be upskilled to learn how to orchestrate and you have access to software that can calculate the complexity of the manufacturing costs.
Step 4: Acquire or merge
This is also a viable option that takes time before the new organization is in place.
ET is unique in the market in orchestrating ACPE in complex manufacturing. Backed by Siemens and sole distributor of Siemens software in the Nordics. ET Advisory is an agile company with enormous experience in Cost Orchestration backed by the ”mother ship” Siemens.
ET represents option to Buy/bring in Advisory – in this subcategory you can choose serval options where you choose between either bringing in companies that help you with each part of ACPE or one that orchestrates costs in a disciplined methodology.
Companies that help you make the assessment current cost set up and share a proposal of what you need to do. You will then need to Execute the Plan yourself and if you want to re-do the exercise in 6-12 months you will need to pay big bucks for a new assessment and plan.
Buy/license software that helps you understand your current cost situation and where you have opportunities to make efficiencies. This requires you to make the Assessment, develop a Plan and Execute
A third option is to bring in a 3rd party that executes the plan. This requires you to assess, calculate, and develop the plan.
ET represents the 4th option - Assess, Create (software), Plan, and Execute.
If you prefer the option to outsource the whole end to end process whilst upskilling your internal teams to manage costs.
Product Cost Management
A PLM-related stand-alone solution which can save from tens of thousands of dollars to over $10 million—is this really possible? ”Absolutely,” says seasoned PLM expert.