𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲 𝐄𝐚𝐭𝐬 𝐌𝐚𝐫𝐠𝐢𝐧 – 𝐐𝐮𝐢𝐞𝐭𝐥𝐲 𝐛𝐮𝐭 𝐂𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐭𝐥𝐲

When cost pressure rises, the go-to response in many companies is clear: negotiate prices, bundle volumes, and push suppliers. That’s valid – and sometimes necessary. But often, it only scratches the surface.

What we keep seeing in projects: The real cost drivers don’t just sit on the supplier side – 𝐭𝐡𝐞𝐲’𝐫𝐞 𝐨𝐟𝐭𝐞𝐧 𝐡𝐢𝐝𝐝𝐞𝐧 𝐢𝐧𝐬𝐢𝐝𝐞 𝐭𝐡𝐞 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧, 𝐢𝐧 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐚𝐧𝐝 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐜𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲. 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲 𝐄𝐚𝐭𝐬 𝐌𝐚𝐫𝐠𝐢𝐧.

Too many variants, custom configurations, niche materials, special colors – every individual decision seems harmless, but collectively they add up. They lead to higher unit costs, smaller batch sizes, more planning effort, increased inventory, and extra quality checks. 𝐌𝐚𝐫𝐠𝐢𝐧𝐬 𝐞𝐫𝐨𝐝𝐞 𝐬𝐢𝐥𝐞𝐧𝐭𝐥𝐲 and 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲 𝐄𝐚𝐭𝐬 𝐌𝐚𝐫𝐠𝐢𝐧.

A structured approach to complexity management means:
✅ analyzing the current product portfolio
✅ assessing variants based on cost, volume, and value
✅ deciding which ones truly matter – and which don’t
✅challenging technical specs
✅ collaborating across engineering, sales, and supply chain

In one recent case, rationalizing just a handful of low-impact variants unlocked several hundred thousand euros in annual savings – sustainably, not just for one fiscal year.

𝐌𝐲 𝐛𝐞𝐥𝐢𝐞𝐟: 𝐈𝐟 𝐲𝐨𝐮’𝐫𝐞 𝐨𝐧𝐥𝐲 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐧𝐠, 𝐛𝐮𝐭 𝐧𝐨𝐭 𝐬𝐢𝐦𝐩𝐥𝐢𝐟𝐲𝐢𝐧𝐠, 𝐲𝐨𝐮’𝐫𝐞 𝐧𝐨𝐭 𝐬𝐨𝐥𝐯𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐩𝐫𝐨𝐛𝐥𝐞𝐦. targetP will gladly support you in identifying potentials to reduce cost, complexity, and risks.

How do you manage complexity in your organization – systematically or reactively?