Cost Reduction

Cost Reduction Program

The Cost Reduction Program (CRP) allows clients to meet their budget and achieve a healthier cost base, while creating a lasting competitive advantage.

Usually when Ongoing price erosion adds pressure on organizations A cost reduction plan must be conducted to protect the bottom line. Cost savings can be created throughout the entire economic cycle, from inception to phaseout. In order to prevent costs bouncing back, improvements must be systemized.

At ceratech，cost reduction also is the process of decreasing our customer's expenses to maximize profits. It involves identifying and removing expenditures that do not provide added value to customers while also optimizing processes to improve efficiency. Cost reduction typically focuses on generating long-term savings.

Ways we do

· Component prices are different by territory，so call “cross the border gap” most prices are lowest in Asia due to huge demand. Ceratech source in Asia and come back with best cost for the exactly same product to our customer.  

· We review every BOM annually and apply for cost reduction from our principle then present our achievements to our customer accordingly.

· We aggressively cross the part from manufacturer for higher quality and lower cost. By cross the brand we usually achieve a significant cost reduction on each BOM.

· New product introducing (NPI) is an other way helps get better cost especially when products close to EOL (end of life) stage.

· By review of material itself, we also calculate logistic, transaction, and financial cost to optimize the procedure and archive a cost reduction aim.  

· Other proposals by customer to reduce the cost are welcomed,  and will be seriously considered.