You need to reduce cost in your organization significantly and in a sustainable manner? Try our proven approach to reduce cost sustainably across the entire product lifecycle, the end to end value chain and including savings that consider planet and people as well.

1. SCORE: Sustainable Cost Reduction | February 2016 | © 2012-2016 Proprietary and Confidential shared.value.chainPage 1
Delivering triple bottom line savings
SUSTAINABLE COST REDUCTION

2. SCORE: Sustainable Cost Reduction | February 2016 | © 2012-2016 Proprietary and Confidential shared.value.chainPage 2
Subject Situation Target Group Value Success factors
What is it about? Why is it of interest? Who is interested in it? What is the benefit? How does it work?
• Sustainable Cost
Reduction goes beyond
traditional cost reduction-
it is focused on
reducing costs through
sustainable practices
• Companies are often
using cost reduction with
a focus on short-term
gains and therefore miss
out on long-term
possibilities for cost
reduction
• Cost reduction is one of
the most important
ongoing issues in
businesses and ensures
continuous profitability
• At the same time,
sustainability has proven
to enhance a company’s
profits and preparing it for
future possibilities
• The public and
companies’ stakeholders
increasingly demand
sustainability to be taken
into account.
• Our approach is
interesting for all
companies who want to
reduce costs
• It is designed for a cross-
functional team of
purchasing, production,
sales, supply chain,
logistics etc. who will
jointly work on reductions
• As a result top- and
middle managers can
rest assured that cost
reductions are
achievable
Sustainable Cost
Reduction helps you to..
• ...determine all
opportunities for your
cost reduction and what
you can do to implement
them
• ...gain a perspective of
levers for cost reduction
and how to use them
• ... invest in the right
activities which ensure
short- and long-term cost
reduction without
jeopardizing growth
• Proven project structure
with ~10 product-specific
workshops to identify
levers throughout the
entire product portfolio
• Development of ideas for
cost reduction and
translation into concrete
project ideas with
responsibilities
• Proven and hands-on
implementation
philosophy with a project
management office
Exemplary project approach Illustration of deliverables and benefits Your chance
Next steps
• Take advantage of our
expertise and methods
• Secure a competitive
advantage through a
structured process
• Contact us today:
info@sharedvaluechain.com
• +49 89 461 331 686
Sustainable Cost Reduction can help to deliver triple
bottom line benefits

3. SCORE: Sustainable Cost Reduction | February 2016 | © 2012-2016 Proprietary and Confidential shared.value.chainPage 3
We use our proven sustainable cost reduction methodology
(SCORE) to deliver results
Market
induced
change
1
Top Management
Cross-functional teams
Opportunity
Workshop
2
Cost
Reduction
PMO
3
• Identify market need /
competitor action
• Identify product groups
that have to improve
its cost position
Business Units and Functions
• Cross-functional workshops
to identify and develop cost
reduction opportunities
• Detail high potential
opportunities in measure
sheets
• Agree on an action plan
• Implementation of
agreed and consigned
measures
• Resource allocation
and prioritization
Benefits of using SCORE
for companies
• A proven method to identify,
develop and implement
additional cost reductions
• High rate of implemented
measures due to commitment
of cross-functional teams
• New perspectives and levers
to reduce cost along the
product lifecycle and along
the value chain
• The approach creates an
internal community of
engaged cross-functional
teams
• A project management office
supports follow-up,
measurement and
implementation support
• Measurement of progress and
results according to standard
metrics and best practices
The ROI of our SCORE
between 1:10 and 1:100
The ROI of our SCORE
method is typically
between 1:10 and 1:100
• Track follow-up
• Support teams during
implementation
• Resolve conflicts of
interest between
management and
business units
SCORE = Sustainable Cost Reduction Methodology
• Reconciliation with Controlling
and savings measurement

4. SCORE: Sustainable Cost Reduction | February 2016 | © 2012-2016 Proprietary and Confidential shared.value.chainPage 4
Product Cost Optimization Workshops – Identify savings
potential of 12-16% of COS
RESULTS
• Savings potential as 12-
16% of COS identified
• Several hundred ideas
were identified and
around 15% of these
formulated in detail
1
2
3
4 Client Situation
Challenge
Approach and Solution
“Take Aways”
• Client is a € 700 Mio. German Electronics company, delivering
products, solutions and services in the industrial environment of
power, signal and data.
• Though still in a beneficial economic situation, the company has
set itself the goal of increasing its growth profit margin (GPM) to
50%.
• In order to reach its Gross Marging
targets, the company had to
drastically reduce its cost of sales
• At the same time, the client aimed
to raise its turnover by 40% over
the next 5 years.
• The company had already
undertaken certain measures to
reduce costs, mainly within its
production set up (lean etc.), and
wanted to identify further savings
• The objective was to identify
significant savings potential to be
realised in the next 1-2 years
without jeopardizing growth.
• shared.value.chain supported the client in conducting workshops
to generate ideas and measures to improve costs, esp. COS.
• The workshops were conducted within multi-functional teams
(product development, quality, purchasing, SCM, controlling,
product management) for different products/ product groups.
• Technical support and moderation enabled multi-functional
teams to identify a broad range of new and unique saving ideas.
• Start early to optimize your
cost saving approach – don’t
wait until the market forces
you to do it!
• Introduce a project
management office to
manage/track the agreed
savings and project
approaches.
• Use the power of cross-
functional teams and align
constantly with project owners.
• Take a ‘we’ instead of an ‘I’
approach to unlock the
potential within the company.
Case Study

5. SCORE: Sustainable Cost Reduction | February 2016 | © 2012-2016 Proprietary and Confidential shared.value.chainPage 5
Your Contact
Adams-Lehmann-Straße 56
80797 München
Tel. +49 89 461 331 868
Mobil +49 170 768 58 61
mdheur@sharedvaluechain.com
http://bit.ly/1G1vpcm
We help companies to achieve sustainably better performance
Diplom-Kaufmann
Michael D‘heur
Founder & Managing Director
Springer Gabler;
Deutsch; Published Oktober
2013.
More Information:
http://bit.ly/1fTcrWg
Springer International;
Englisch; Published April
2015.
More Information:
http://bit.ly/1fTcrWg
http://linkd.in/1NtS3ch
http://on.fb.me/1xsHxzO
http://bit.ly/1HePpFy
Join the Conversation
www.sharedvaluechain.com
@SharedxValue
Media Partners & Publications