€4+ billion
In client savings delivered
Material Cost Optimization
Cut material costs. Strengthen profitability. With EFESO, you achieve measurable savings through targeted sourcing, AI-powered analytics, and implementation that turns technical and commercial levers into impact.
Optimizing Material Costs to Increase Profitability
Material costs often account for 40 to 60 percent of total product costs. In high-cost regions, rising energy, labor and regulatory burdens put pressure on margins. Global instability and market volatility are pushing industrial companies to rethink their cost structures.
Optimizing material costs is no longer optional – it’s essential. A five percent reduction in material costs can increase profitability by up to 70 percent. EFESO helps you realize that value. We address both commercial and technical levers, using proven methodologies to turn complexity into measurable, sustainable cost savings.
Real Results Achieved with our Clients
Here are some examples of results in Material Costs Optimization:
Up to 12%
Savings from commercial cost-out programs
Up to 20%
Product cost reduction through design-to-cost and benchmarking
A Tailored and Pragmatic Approach that Fits your Reality
Our methodology combines two coordinated workstreams – commercial and technical – tailored to your material cost levers. We apply spend cube AI, target costing, sourcing strategies, and competitive supplier negotiations for fast results.
In parallel, we run technical concept battles, design-to-cost workshops and supplier collaboration programs to secure long-term gains. Transparent reporting and continuous tracking ensure total control and lasting impact.
Material Cost Optimization Client Results
$3.87M
Annual cost reduction vs. baseline
Chemicals
Optimizing Network Footprint to Offset Raw Material Costs and Enable Strategic Growth
Network redesign delivered $3.87M savings, offsetting raw material cost increases while enabling international expansion.
>10%
Material and manufacturing savings indicated
Automotive and Commercial Vehicles
Product Cost Optimization for Automotive Thermal Management System
Transformed unprofitable thermal management module through systematic cost optimization, achieving material, manufacturing and investment savings exceeding targets.
+30%
Productivity improvement
Life Sciences
A Long-lasting Partnership, Driving Productivity Gains and Strategic Transformation
Transformed seven manufacturing facilities across three countries, achieving 30% productivity gains and 45% faster innovation.
The EFESO Touch
What sets EFESO apart is our ability to implement at speed and scale. We bring over 40 years of cost optimization experience – built on 500+ projects across automotive, off-highway and manufacturing sectors.
Our approach combines deep industry know-how with hands-on execution. Whether you’re reshaping sourcing strategies or optimizing supplier design, we align your teams on measurable outcomes and deliver the tools, methods, and coaching to sustain impact.
From AI-powered analytics to real-world supplier collaboration, EFESO helps you turn material cost pressure into competitive advantage.
Meet Some of our Material Cost Optimization Team Members
Ready to Pay Less for Better Materials?
- Reduce material costs without touching product quality
- Stop accepting annual price increases as inevitable
- Get the strategies saving leaders billions on materials
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