Case Study: High Tech Electronics Company achieves significant cost reductions with aPriori

High Tech Electronics Company Drives Significant Cost Reductions with Contract Manufacturers

A global High Tech Electronics OEM that designs networking equipment, servers and switches and outsources 100% of manufacturing to major contract manufacturers faced intense competition, short product lifecycles and a complex global supply chain. Product teams had no early visibility to cost, relied on slow, unreliable spreadsheet estimates, and struggled to negotiate supplier pricing—putting product margins under constant pressure.

The company created a centralized cost-engineering team (with an engineering service center in India) and deployed aPriori product-cost-management software to produce fast, detailed should‑cost cBOMs, run scenario analyses, standardize supplier quotes and generate tooling BOMs. The program delivered rapid, measurable savings (examples: $125,000 and $33,750 in identified savings, and a renegotiated part cut from $84.27 to $28.86 — ~65% cost reduction), earlier cost visibility, more productive negotiations and improved product profitability.