Value Engineering

Amid challenging market conditions, Value Engineering can become a powerful tool in procurement’s armoury. It offers businesses producing goods with multiple benefits by unleashing cost savings, while simultaneously fostering sustainability, resilience, and innovation.


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

  1. Ideation Workshop

    To pave the way for future value creation, mobilize a cross-functional team to cultivate transparency on the status quo. This will involve uncovering a long list of ideas to prepare for an impactful journey filled with innovation and a clear path to success.

    • Longlist of ideas assigned to teams for further detailing
  2. Validation Workshop

    Engage in insightful discussions about trade-offs and navigate key challenges to explore idea analysis and value opportunities comprehensively. Formulate prioritized initiatives based on these discussions and prepare for further detailing to ensure a well-rounded approach.

    • Shortlist of initiatives for business case creation
  3. Execution Workshop

    Define roadmap & milestones, and allocate resources for seamless execution to establish the final value target for maximum impact. Sign-off on business cases for implementation and create a comprehensive program that aligns all these elements cohesively.

    • rigid execution plan, primed for value realization

Value Realization Phase

  1. Drive rapid fact-based decision making to ensure the secure delivery of impact.

  2. Trial new functionalities and recipes on the production lines.

  3. Validate the impact on consumer behavior via market research and source optimized products along with new raw materials.


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.


Get in contact with our experts

Paul Mohr

Managing Director Contact

Lukas Rauh

Principal Contact