The manufacturing sector has witnessed multiple changes in the last decade, including a shift to the customer-centric B2B2C model. Though the sector has recovered from past economic downturns, 2020 has presented it with unprecedented changes that will impact global market and economies. The need of the hour for manufacturing firms in the current crisis is to build resilience operationally and financially.
To help manufacturers become resilient, operationally and financially, TCS has created a Strategic Cost Management tool. It helps firms address their cost management needs across the value chain, offers visibility in business operations, and uses analytics to assess risks and impacts of cost outs. The tool offers a unique view of costs build up and depicts costs not only from supplier-related transactions but also those from end customers.
While the tool is not a one-size-fits-all mechanism, it can be customized and executed to suit the needs of any manufacturer. This is possible thanks to TCS’ deep domain expertise, frameworks, industry-specific accelerators and assets, and advanced data analytics capabilities.
Benefits for the short term:
Increase cost efficiency
Conserve capital by avoiding cost obligations
Benefits for the medium to long term:
Develop a deep understanding of product cost assumptions and dependencies
Make critical decisions at various stages of the product development process
Manage product mix to achieve product portfolio profitability
Develop robust and scalable models for operations
Build cost competitive products for the market based on the total cost of ownership