Optimizing the Tooling Margin of a Rank 1 Equipment Manufacturer
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Presentation
Our client, a rank 1 equipment supplier, wants to diagnose and optimize the tooling margin. KEPLER offers to conduct an internal diagnostic together with a benchmark to identify potential optimization levers.
Context
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A low or a negative tooling margin, absent from the program performance radar
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Multi-source (engineering, procurement, sales) and unidentified causes of low profitability for the tools
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Competitors able to offer a lower tooling price: potential optimizations exist
Objective(s)
Category: Optimizing Return On Investment
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Increasing the performance of the tooling margin achieved on the programs of one of the Business Groups
The tooling margin in the context of a «BtoB» company is a complex subject due to the involvement of a multitude of internal players (sales, engineering, procurement...) and external players (customers, suppliers). It is often considered not very strategic and weakly controlled, although there are actual margins for maneuver and possible optimizations.Audrey Berthomieu, Manager
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