Strategic cost management
Our world wide focus allows us to be involved in procurement on an international scale. The global market price level along with total cost considerations is the factor used to determine the target price.
To choose the right suppliers for an early supplier Involvement, it is important to know the cost structures of the suppliers. Sufficient cost transparency is a prerequisite for determining which suppliers will be able to achieve the target costs.
For existing products, Punch Powertrain will work with the suppliers in interdisciplinary value analysis teams. Instead of using annual price negotiations we want to move to an on-going, open cost discussions. In doing this, the object is not to challenge the suppliers' profits, but to identify and eliminate the costdriving factors caused by both sides and therefore jointly achieve the best cost level.
This requires a readiness and an ability to discuss existing and possible cost structures openly within a team environment while also creating new ones. We are ready to further bundle our requirements and make long-term commitments to you as a supplier.
The goal is to maximize the profitability of our suppliers as well in relation to the global market cost level.
