Breakthrough Cost Reduction (BCR)

One of our core competences is to achieve dramatic cost reductions in manufactured goods, and in services, through our innovative Breakthrough Cost Reduction methodology, which combines business and engineering views in a uniquely effective way:

  • Analyzing the supply market to identify new suppliers and technologies
  • Thoroughly understanding suppliers’ cost structures by building a comprehensive cost model of their operations
  • Tearing down the client’s product and competitive products to generate cost reduction and quality improvement ideas
  • Cross-functionally working with our clients’ R&D, engineering, purchasing, manufacturing and marketing teams to identify cost improvement opportunities in a product’s design in line with market and consumer demand
  • Identifying win-win cost reduction opportunities for our clients and their suppliers

We find our BCR approach to be highly effective, often resulting in dramatic cost improvements in the 10-30%+ range, far exceeding our clients’ expectations.

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Select Success Stories

Generated savings in the 30-40%+ range for complex capital goods by effectively combining low-cost-country sourcing and Design-to-cost approaches (USA, Europe, Asia)

Saved USD millions (40%+) through Design-To-Cost activities and low-cost country sourcing for a leading operator of public bicycles. Leveraged detailed cost models of the suppliers’ cost structure to identify joint cost savings opportunities. (Europe, Latin America)

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