Within the LevaData Platform's Savings Opportunities feature are numerous types of cost savings opportunities presented in both the Opportunity Awareness and Review Opportunities interface.
The Opportunity Awareness feature allows users to filter by these opportunity types and defines the different categorization of these opportunities as defined within the LevaData Platform.
The Review Opportunities feature 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 any savings 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:
Customer Lowest Internal Price Opportunities
These are cost savings opportunities where you already have a lower price for the same part somewhere else in your supply chain. This presents opportunity to leverage price normalization and demand splits to homogenize pricing. The LevaData Platform 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 sourcing.
The following are all examples of Customer Lowest Internal Price Opportunities:
- 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).
External Market Benchmark Opportunities
These are cost savings opportunities from comparing your pricing to the market and benchmarks. The LevaData Platform performs market normalization via anonymized statistical price benchmarking in order to develop a clear target price spectrum with confidence and obtainability down to the part or attribute level. Our methodology is dependent on MPN Matching.
The following are all examples of External Market Benchmark Opportunities:
- Opportunity Type: Alternate Part - comparing the MPN currently being sourced against matching Form, Fit, and Function (FFF) parts that could 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 opportunity insights. 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.