Cost Reduction

Plextek helps clients reduce the cost of manufactured products by up to 40%.

How We Reduce Costs

We enable clients to achieve these cost savings in two different ways:

1. Effective component price negotiation – we undertake a large number of development projects each year and so have excellent visibility of suppliers' cost models at different volume points for a wide range of components. As a result, our negotiators are able to receive the lowest possible pricing.  We are able to reduce the cost of existing designs leading to instant increases in profitability.

2. Design for cost – we involve procurement experts right at the start of cost sensitive developments. This enables us to make optimal component decisions at design time which gives our negotiators the best chance of receiving the best possible prices as we enter the manufacturing phase.

Plextek can undertake complete cost reduction programmes or simply work alongside your procurement team and engineering staff.

Example Projects

• Plextek's purchasing experts managed to achieve an overall cost reduction of 25% for a wireless modem which in turn led to a 40% increase in profit margin.
• Plextek redesigned an automotive product and were able to reduce the unit cost of the final product from $50 to $25.