Opportunity Types: Introduction Follow
Within the LevaData Platform there are numerous types of cost savings opportunities available.
Our Review Opportunities module lists cost savings opportunities and percent savings with comparative types in detailed view to let the user review parts they are currently spending on and whether they have alternatives, matches, or competitive benchmarks to examine for future savings.
Understanding Opportunity Types
When reviewing opportunities, you will frequently be presented with a variety of these opportunity types and have the ability to act on the insights presented to determine the best cost savings available to you for the parts you are trying to source. These opportunity types broadly fall into two categories:
When there are multiple prices for the same parts within a customer's supply chain, there is opportunity to leverage price normalization and demand splits to homogenize pricing. Customer Normalization analyzes your internal data and exposes where those internal MPNs are purchased at multiple prices, at multiple CPN levels, or at multiple CM/ODMs. You can optimize these opportunities or use them to help inform your own reasoning for sourcing decisions.
These are Customer Normalization Opportunity Types:
- Opportunity Type: CM/ODM Lowest Cost - The CPN price vs. the lowest of two-or-more prices paid for substitute MPNs regardless of the CM/ODM manufacturing site.
- Opportunity Type: Internal MPN Lowest Cost - The difference between the MPN Price when compared to the lowest of two-or-more prices paid to the same supplier within an enterprise.
- Opportunity Type: Multi Source - The difference in CPN price vs. the lowest of two-or-more prices paid for substitute MPNs within the same manufacturing site (CM/ODMs).
Market Normalization is anonymized statistical price benchmarking of customer vs. community vs. market to develop a target price spectrum and confidence and obtainability at a part or attribute level. It is dependent on MPN Matching.
These are Market Normalization Opportunity Types:
- Opportunity Type: Alternate Part - comparing the MPN currently being sourced against matching Form, Fit, and Function (FFF) parts that could potentially replace that MPN at a significant cost savings.
- Opportunity Type: Benchmark - The MPN cost is compared to the distribution of MPN costs within our community database and competitively benchmarked at key percentile levels.
- Opportunity Type: eBenchmark - Multiple types of benchmarks established on comparisons of a MPN discount from distributor lowest cost, or of an average MPN discount within various groupings, to provide potential savings.
Our goal with these opportunity types is to help you discover significant cost savings across your part sourcing strategy. The value of each of these opportunity types depends on the data that you load with LevaData, and the more detailed data you are able to load increases the potential to unlock insights from these opportunities in our platform. If you would like advice on which types of opportunities to pursue, please reach out to your customer success manager. If you have difficulty using or analyzing any of these opportunity types, please do not hesitate request assistance from the help desk.
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