Gain Market Share. Stay Competitive.
We go beyond value engineering with a disciplined, holistic process that reduces complexity and Cost of Goods Sold (COGS) while improving manufacturing, serviceability and revenue enhancement.
Argo’s international team of Product Value Management (PVM) experts have worked with companies in multiple industries to resolve product portfolio challenges and embrace the competitive advantage of evaluating and redesigning existing products. With a target cost always front and center, we help companies realize a 15 to 25 percent reduction in product costs, a major portion of which is materials cost.
Traditional Value Engineering initiatives focus on specific products/product lines, taking place in a single location involving small engineering teams and therefore low company implication. Argo’s Product Value Management involves multiple regions/markets where the product is sold, manufactured and sourced to better understand needs, constraints and identify highly demanded improvement opportunities.
Argo’s Product Value Management
Our product Value Management Approach addresses product-related business issues on three interdependent levels: Define, Design and Deploy. Each stream has a specific goal and approach, but all are different in ways of hitting the same target: EBITDA improvement.
- We span across the whole supply chain: from sales to logistics/supply chain to manufacturing to suppliers.
- Our expertise includes margin analysis, make/buy decisions, footprint optimization, supplier analysis/rationalization.
- The process starts with a thorough understanding of the market requirements, specifications and USPs.
- Our cross functional teams are more comprehensive than traditional “VaVe-teams”. The process includes all relevant departments in different locations to ensure innovation is open to a broader group of influencers.
- Our sources for ideas are extremely comprehensive including performance teardown, cost-function analysis, supplier input, objective design challenges open innovation and benchmarking.
- Component standardization, modularization, overlap elimination and sourcing are savings potential that is added to the pure redesign of the product.
Holistic approach. Benefits beyond cost savings.
Argo’s PVM offers a more holistic approach than traditional cost reduction strategies. The methodology ensures benefits beyond cost savings:
- Establishes a culture of collaboration
- Generates greater competitiveness in the global market
- Drives next-generation innovation
- Introduces a disciplined approach to redesign