Geopolitical tensions are driving supply chain risks, natural disasters are impacting availability so that consumer goods producers find themselves hit by a perfect storm of longer lead times, inflationary cost pressures and frequent supply disruption across the globe.
How can you benefit from Value Engineering
Value Engineering systematically challenges the existing product portfolio, specifications, and end-to-end processes in order to drive margin improvements & enhance sustainability.
Reduce waste in production, eliminate non-value add design features and unlock opportunities in procurement
Broaden your supply base, shorten lead times, and reduce supply chain complexity by optimizing material usage
Map and effectively manage your Scope³ emissions to advance your sustainability agenda
How it the specific value phases work
Value Discovery Phase
Value Realization Phase
Five keys to success
Create value in every dimension: Focus on value enhancement opportunities that result in sustainability improvements, cost reductions, and increased supply chain resilience, which might also include new product features and specifications
Know your stakeholders and get them on board: Make this a cross-functional exercise, involving Procurement, Marketing & Sales, R&D, Operations, etc., to ensure a perspective in value discovery; Ensure strong top management sponsorship.
Allow for bold ideas and blue-sky thinking: Think about every product, process, and opportunity as subject to value engineering – consciously set no limits to allow for creativity and value generation.
Assign responsibilities and ensure ownership: Clearly define the roles and tasks of each team member as well as the overall governance, to focus the Value Engineering workshops and to allow for rigorous tracking of project progress.
Make tough decisions fast: Strike the right balance between pragmatic approaches and thorough validation in order to allow for timely problem-solving and informed decisions, as well as adaptability to changing circumstances.