BOM Cost Reduction

SVT identifies cost reduction opportunities across your Bill of Materials, improving margins and profitability without sacrificing quality or supply security. Every dollar recovered goes directly to your bottom line.

Improved Margins

Direct improvement to product margins through systematic BOM cost analysis and action.
Cost Reduction

Cost reductions pursued without compromising quality standards or supply continuity.
Deep Analysis

Analysis covers every line item, not just the highest-spend components.

What’s Included?

BOM Cost Baseline Analysis

SVT establishes a complete cost baseline across your bill of materials, benchmarking each line item against current market pricing and SVT’s supplier network to identify overpaid positions.
Alternative Supplier Identification

For components where current supplier pricing is above market, SVT identifies and qualifies alternative sources that meet your technical and quality requirements at a lower unit cost.
Negotiation and Repricing

SVT leads pricing negotiations with your existing suppliers, using market intelligence and competitive alternatives to drive price reductions without disrupting approved supplier relationships.
Form, Fit, Function Substitution Analysis

Where a direct replacement is not available, SVT evaluates form, fit, and function equivalent components that meet performance specifications at lower cost, coordinating engineering review as needed.
Volume Consolidation Savings

SVT identifies where purchasing volume can be consolidated across suppliers or product families to unlock quantity pricing tiers that reduce per-unit cost on high-frequency buy lines.
Savings Tracking and Reporting

Every cost reduction identified and implemented is tracked against the original baseline, giving your finance and operations teams a clear, auditable record of BOM savings realized over time.

Key Outcomes

Measurable reduction in per-unit BOM cost that improves product margin
Market-benchmarked pricing on every line item so you know where you stand
Qualified alternative suppliers to create competition and reduce dependency
Price negotiation to improve existing contracts without replacing relationships

Volume consolidation savings on high-frequency components across your base
Engineering-reviewed options that expand your cost reduction toolkit
Transparent savings reporting tied to BOM line items for leadership
Ongoing cost management that keeps BOM pricing competitive

READY TO THINK BEYOND BORDERS?

Talk to SVT about building a global sourcing program that expands your supply chain and your possibilities.

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BOM Cost Reduction

BOM Cost Reduction

Improved Margins

Cost Reduction

Deep Analysis

READY TO THINK BEYOND BORDERS?

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