Reducing complexity of your direct material supplier parts can help drive significant savings within your company. Similar to our recently published blog which described the importance of conducting internal price benchmarking activities as a prerequisite to competitive benchmarking on a company’s direct material purchases. In both scenarios it’s surprising what you find when you are able to cleanse and enrich your purchase part data, it can expose a variety of opportunities to reduce direct material spend without having to make major changes to your products. To reduce the complexity, we recommend grouping your direct material spend into these 3 groups:Read More
Convergence Data knows the importance of your part data. We know that part data is a core asset for your company, and the quality of that data is fundamental to the health of the business and the bottom line. Start the new year right with a review of the best ways to get your data clean in 2017. Below is a recap of the top 2016 data quality blogs we published to help you stay on top of your company’s core assets in the New Year.
Top 5 Data Quality Blogs of 2016:Read More
Everyone is trying to determine what competitors are charging for their products through competitive benchmarking but will that really help you make a bigger profit? Maybe, but the real gold is in your existing purchase parts. Use the data you already have in house and compare purchased part costs that your company has incurred over the past two years. This data will allow you to truly increase your profit regardless of competitor pricing. Price benchmarking looks outward but for optimal profit you must first look inward.Read More
1. Classification: - a simple concept saves money and time
Companies can leverage classification to reduce design costs. The scientific community regularly uses classification to understand relations among items, with the plant and animal classification schemes perhaps the most familiar.
A classification scheme groups relevant components in a logical and systematic hierarchy and brings technically similar items together, yet uses attributes to distinguish them by their specific details. A classification scheme embraces all existing items and is able to accept new items into the component population using attributes to create mutually exclusive locations for similar components and excluding dissimilar components.Read More