Product and Service Cost and Strategy
Analyze your product
Analyzing your product complexity will give you a better picture of its cost, its complexity and its associated generated revenu.
Externalisation strategy
Externalization is an activity transferred or developed by an external supplier
- Externalization shall make sense regarding the proposed value
- An externalization shall never come with a cost increase
- Externalization only on function non strategic
- Externalisation doesn’t mean depend from your supplier, any supplier shall be able to perform the same tasks
- If an externalisation is unique in technology or in service, strong contract shall be in place and think about acquiring the company when possible.
Integration strategy
Integration strategy is the acquisition of supplier to reinforce the company activity process deemed essential to business continuity:
- To secure related supply parts or activities
- To have better process control (price, Mfg lead time)
- To improved product or service and therefore its quality
- To have competitive advantage
Make or Buy strategy
