Transforming profitability through cost simulation
Driving profitability improvements with strategic cost reductions
Significantly exceeding the original savings goal of 6%
Cost optimization scaled across high production volumes
Manufacturer of recreational engines and propulsion systems, with a particular focus on engines for small aircraft, light sport aircraft, and unmanned aerial vehicles (UAVs).
The client’s materials, including batteries, inverters, and e-machines, were the largest cost drivers in their purchasing portfolio. To boost profitability, they set a target to reduce the purchasing price per piece by 6%, requiring a strategic approach to cost optimization.
Tset's approach combines technical and economic analysis to create ideal-state cost simulations, which are then compared with current client estimate to identify optimization potential. Through collaborative supplier engagement and detailed cost structure analysis, we develop and implement targeted cost reduction measures, resulting in final negotiation of new purchasing contract.
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Learn how Tset leveraged advanced cost simulation techniques to deliver remarkable results for our client.
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