How Tset helped achieve €4.9M in annual savings and significantly reduce costs
Transforming profitability through cost simulation.
What Tset helped achieve
€4.9M annual savings
Driving profitability improvements with strategic cost reductions
34% cost savings
Significantly exceeding the original savings goal of 6%
5,500 units annually
Cost optimization scaled across high production volumes
Customer
Manufacturer of recreational engines and propulsion systems, with a particular focus on engines for small aircraft, light sport aircraft, and unmanned aerial vehicles (UAVs).
Challenge
The client’s materials, including batteries, inverters, and e-machines, were the largest cost drivers in their purchasing portfolio. To boost profitability, they set a target to reduce the purchasing price per piece by 6%, requiring a strategic approach to cost optimization.
Tset's Approach
Tset's approach combines technical and economic analysis to create ideal-state cost simulations, which are then compared with current client estimate to identify optimization potential. Through collaborative supplier engagement and detailed cost structure analysis, we develop and implement targeted cost reduction measures, resulting in final negotiation of new purchasing contract.
To continue reading about Tset's approach, download the full case study for free below.
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