Unlocking Cost Savings and Digital Transformation for Kardex
Avencore is a specialist industrial strategy consultancy that has partnered with Kardex to streamline product costs and drive its digital transformation journey . Through a data-driven Redesign-to-Cost project , the results revealed significant cost reductions while establishing the foundation for Kardex ’ s digital future .
Kardex encountered two core challenges , which the Avencore Redesign-to-Cost framework addressed : enhancing product competitiveness via sustainable cost reduction and leveraging the power of data-driven solutions for digital transformation .
Data-Driven Approach Breaks Down Silos
A fundamental aspect of Avencore ’ s Redesign-to-Cost framework is overcoming limited data availability and accessibility . By combining data fragments from various silos and systems into one cohesive baseline , they created cost transparency . The collaborative process between Avencore and Kardex ’ s teams paved the way for identifying and implementing numerous cost-saving opportunities .
Unveiling Hidden Savings Through Data Management
Collection , merging and analysis from multiple sources :
• Sales & market data
• Engineering data ( product structure , variants , specifications )
• Purchasing data ( supplier landscape , pricing , volumes )
• Production & machine data ( utilization , processes , tool wear )
• Field-Collected User Data ( error codes , performance data )
The resulting database enabled Avencore to challenge existing specifications , performance levels , tolerances , and purchasing parameters .
Measurable Results : 7 % Annual Cost Reduction
The result of the Redesign-to- Cost project was a 7 % annual cost reduction for a selected product line , demonstrating the effectiveness of datadriven optimisation . The project ’ s success was due to restructuring processes and teams engaging in an innovative approach , thus setting the stage for Kardex ’ s broader digital transformation .
Empower Your Business
Are you ready to boost your competitiveness and fuel your digital transformation ?
Contact us today to discuss how our expertise can empower your business .
Contact us