#13 Product Benchmarking a 5-Step Guide to Cost Savings

In this episode, we delve into the transformative power of product benchmarking in procurement, outlining five essential steps that can lead to significant cost savings—potentially up to 20%.Key Highlights:Identifying Competitive Products: Learn how to leverage supplier relationships and market insights to select relevant products for comparison, ensuring a comprehensive benchmarking process.Developing Data Collection Templates: Discover the importance of breaking down products into components and manufacturing processes, capturing all cost-driving features to avoid blind spots.Conducting Benchmarking Teardowns: Understand the process of assembling a team to dissect each product meticulously, documenting every detail to facilitate accurate comparisons.Analyzing Design and Functionality Differences: Explore methods to assess the functionality and cost implications of each feature, identifying areas for improvement.Identifying Cost Reduction Opportunities: Utilize insights from teardowns to prioritize initiatives that drive cost savings and enhance procurement efficiency.By implementing these steps, procurement teams can optimize product designs and reduce costs effectively.Note: Regular product benchmarking can lead to substantial production cost savings, underscoring its value in a robust procurement strategy.