Costreduction

We can reduce costs of spend as well as investments
through sourcing from China.

  • Establishing a new cost base – nothing temporary
  • A structured methodology
  • In close cooperation with customer organization

Many cost reductions programs are aiming at re-negotiating agreements with current suppliers. Re-negotiating agreements with current suppliers is not a stable method. They already have their cost level established and only temporary price reductions can be achieved. Quite soon the prices are up to previous level again. And including the consulting fee – the saving is often limited.

BtC offer another method. We re-build the cost base of our customers. We find more competitive suppliers in China – with a lower cost level.

And challenging the oligopoly environment of many supply areas in Europe have proven to open up for significant cost reductions also from current suppliers. One could say that we re-write the rules of competition through introducing entirely new players into the game.

We have run programs for 1,5 – 2,5 – 3,5 years with large corporations.  Addressing MRO areas, total spend and investments.

A dedicated team is put together within BtC.  To correspond with an established organization within customer.

And we then have an interactive process with the customers organization to;

  • Identify potential areas for saving (BtC providing a CLIP methodology)
  • Prioritize the search work for these savings
  • BtC to investigate prioritized areas
  • BtC to present what can be offered in each area
  • BtC & customer organization to validate areas and manufacturers to put into active sourcing
  • BtC to run regular sourcing process on behalf of the customer – with interaction level selected by the customer
  • New lower cost level established when deliveries start

The name of the program is “Cost Level Improvement Program”, “CLIP”.

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