Identification of substantial cost reduction potential by conducting virtual benchmarking for a leading engineering company
Identification of substantial cost reduction potential by conducting virtual benchmarking for a leading engineering company
2 PagesIdentification of substantial cost reduction potential by conducting virtual benchmarking for a leading engineering company Challenge Our client was facing increasing competition from Asian market players. In a recent tender the price level of our client’s offer was twice as a high as the one of an Asian competitor and 50% higher than that of the first European competitor. Thus, a short-term benchmarking project was set up to identify the main cost gaps with the competition’s products. Approach Arthur D. Little employed a holistic benchmarking approach following a strong value-engineering structure. As our client was not able to acquire the competitor products for a real-life hardware comparison due to time and compliance restrictions, we developed a database with the relevant data (e.g.,
