Companies routinely apply cost reduction approaches that focus mainly on reducing the cost of components in a product. This typically leads to cost savings of a few per cent. Our approach to product cost reduction - Product Challenge - typically delivers savings of between 20 and 40 per cent and sometimes as high as 70 per cent.
Our approach questions the fundamentals of a product's specification, technology and manufacture, and takes a system level approach to its design. Product Challenge was introduced by Sagentia eight years ago and since then there has been a distinct evolution in the nature of the projects undertaken. Iain Ansell, Head of Product Development, explains: 'To begin with we worked primarily with mature products, with a brief to eke out a few more years of profitable performance by extending margins. Now we work increasingly with relatively young products - perhaps only two years old. These products might have been rushed to market and redevelopment is needed to address compromises in the initial design; or, in the words of one client, 'we don't want to leave our money on the table'. Our task is to increase the profitability of an already successful product, and thereby maximise the initial investment.'
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