In our final post on the trends for 2013, we look at cost. We know this is predictable, but product cost we believe will be a hot topic in the coming year:
A penny saved is a penny earned:
Understanding product cost is pivotal in improving the profitability of the business. Even small fractions of a penny can mean major cost improvements. The change we see is that companies will start to examine the elements in build up costs into a product, verses just looking at the end cost and negotiating supplier costs down. A deep understanding of the elements that make up the cost of a component; materials, processes, finishes and where something is manufactured will be essential. Providing this information to an Engineer finger tips from the offset of development will help drive cost out earlier in the design cycle.
We have started to see the PLM vendors making investments in this area (see Siemens acquisition of Perfect Costing Solutions GmbH late last year) and we expect specialist vendors such as Facton GmbH and aPriori to grow with their offerings and client base.
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