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Product & Innovation

Product line profitability improvement for global manufacturer of industrial products

A global manufacturer of industrial products asked Applied Value to size and seize opportunities for improving product line profitability. Applied Value provided a roadmap with over 20 unique product line profitability improvement opportunities and identified savings of 2.2 MUSD.
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Situation

A global manufacturer of industrial products asked Applied Value to identify and seize opportunities for improving product line profitability utilizing cross-functional information. Applied Value was also asked to develop tools and process for driving future initiatives and create a roadmap to seize and sustain identified profitability improvement opportunities.

Approach

Applied Value consolidated various data inputs and generated analyses using cost, pricing, and features tools that were reviewed in cross-functional workshop forums. Applied Value analyzed cost reduction and pricing improvement opportunities based on technical and commercial drivers, customer segmentation, value drivers, and features.

Results

A roadmap with over 20 unique product line profitability improvement opportunities was developed together with a repeatable process and ways of working for continuous expansion and improvements. The opportunities accounted for approximately 2.2 MUSD in savings.
2.2 MUSD million USD

profitability improvements

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