cost reduction program

The Cost Reduction Program (CRP) at Ceratech empowers clients to align with their budgetary constraints and establish a more sustainable cost structure, thereby securing a lasting competitive edge.

In scenarios where continuous price declines exert pressure on organizations, implementing a cost reduction strategy becomes essential to safeguard profit margins. Savings opportunities exist across all stages of the economic lifecycle, from product development to discontinuation. To ensure these savings are enduring, it’s crucial to institutionalize the enhancements made.

At Ceratech, cost reduction is about lowering our clients’ expenses to boost their profitability. This process entails pinpointing and eliminating costs that don’t contribute to customer value and refining operations for heightened efficiency. The focus is on achieving enduring cost savings.

How we achieve cost savings

  • Due to geographical price variances, often referred to as the “cross-border gap,” component costs are generally lower in Asia because of the high demand. Ceratech leverages this by sourcing from Asia, ensuring our customers benefit from the most competitive prices for identical products.

  • Annually, we evaluate each Bill of Materials (BOM) and negotiate cost reductions with our suppliers, which we then pass on to our customers, showcasing our cost-saving accomplishments.

  • We proactively substitute components from different manufacturers to enhance quality and reduce costs. This strategic “cross-branding” typically results in substantial savings on each BOM.

  • Introducing New Products (NPI) serves as another strategy to secure better pricing, particularly for products nearing their End of Life (EOL) phase.

  • In our cost analysis, we consider not just the material costs but also logistics, transactions, and financial expenses to streamline processes and achieve our cost reduction goals.

  • We are open to and seriously consider any suggestions from customers aimed at cost reduction, embracing collaborative efforts to minimize expenses.

the standard for services

When expertise is in high demand, Ceratech utilizes its years of experience to assist product creators in realizing their technological aspirations. Explore the potential of harnessing Ceratech’s Intelligent Solutions for your upcoming innovative project.

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