Please enable JS

Procurement Cost Management Excellence

Client situation & approach

Global manufacturer of helicopters wanted to profitably increase market shares in both mature market segments and innovative niches. Investment in key Design to Value initiatives on two main product platforms, one dating back 20 years and one game changer in the industry. We supported in:

  • Addressing the overall product structures, on both make and buy and assessing the cost reduction potential of both product platforms
  • Evaluating best improvement strategies and solutions for components and airframe, combining (re-)negotiation, (re-)sourcing, (re-) industrialization, (re-)design
  • Implementing cost reduction programs

Results

  • For the existing platform, more than 20% of product cost reduction, and gap closed with target cost enabling to profitably win new contracts
  • For the new platform, more than 25% cost reduction and financial viability ensured for the program business case, with sign-off of investments to finalize entry-into-service
  • DTV/SC organizational unit set-up and capable to support product competitiveness in make and buy cost areas