Study into value and cost management

Considerable potential remains untapped

In many companies, cost optimisation is primarily applied to current series’ and in tendering processes, leading to a strong focus on commercial optimisation in procurement. Several organisations are looking to optimise total cost of ownership (TCO) in early development phases – i.e. where the influence on cost is at its greatest.

As one of the leading German management consultancies in the areas of value and cost management, we advance the following hypothesis: the only way to identify potential savings across interfaces is to integrate development, purchasing, operations, and sales as closely as possible; and only by doing this can the cost structure of the company as a whole be optimised. Are there any companies in which this model is already being implemented? In order to find out if it is, in November/December 2014 we conducted an internet survey to shine some light on the current state of cost management.

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