Manufacturing, Cost & Profitability Benchmarking
Ascendant's manufacturing, cost and profitability benchmarking programs enable clients to benchmark their own production costs and processes against alternatives used in the industry.
​Our benchmarking programs are designed to enhance our clients' understanding of key cost drivers and process differentiators associated with a specific product line and assess how they vary by technology, process and geography. From the benchmark, Ascendant identifies the relevant actions our clients need to implement in order to improve their ability to compete effectively whilst retaining acceptable profit margins.
Reliable information into specific manufacturing processes and technologies, cost structures, operating expenses, revenues and profitability is often unobtainable from published source data, or can only be estimated based on outdated industry sentiment and assumptions. Through the collection of detailed evidence into the production processes that are employed, how the business and manufacturing organizations are structured and run, and what resources are utilized, related to a specific product, Ascendant develops a site-specific COGS model that is detailed enough to show each key line item and the costs associated with it.
Program Evidence
- Current and forecast sales by product and by region
- Manufacturing footprint; location and product mix per site
- Product specific capacity and production volumes per product per site
- Raw material sourcing, suppliers and cost
- Current technologies and processes utilized
- Equipment type and age
- Logistics and transportation costs
- Fixed and variable cost structure of each facility
- Route-to-market from each facility
- Recent and planned investments and expansions
Program Insights
- COGS model for a specific product or product group
- Key cost drivers and relative cost position of client versus other players in the industry
- Key strengths, weaknesses, threats and opportunities associated with different manufacturing strategies
- Key differentiators, both positive and negative, at a raw material, process, technology and operational level
- Potential for cost reduction and efficiency improvements
- Areas where production process and technology innovation can be achieved
- Past, current and future market dynamics that will drive future supplier strategies
Market Opportunity Analysis
Maximizing new opportunities for growth is a key challenge faced by all organizations. With slow growth in mature markets and increasing competition in emerging ones, it has become necessary to evaluate future growth opportunities at a regional and country level.​
Whether the potential growth opportunity is a new application, a new product/technology or new geography, Ascendant's market opportunity analysis programs are designed to ensure that the supply and demand, technology, channel structure, customer and regulatory landscapes are all fully understood and the resulting growth scenarios and associated action items analyzed.
Program Evidence
- Current and forecast market size
- Trends and growth drivers
- Market segmentation
- Product substitution threats and opportunities
- Current supplier landscape
- Key supplier strategies
- Supply / demand dynamics
- Channel structure
- Pricing and margin levels
- Value chain
- Governmental and regulatory factors
- Customer segmentation
- Typical purchasing behaviours
- Unmet customer needs
- Customer perception of price and pricing thresholds
Program Insights
- Key growth opportunities by product, segment and channel and geography
- Areas of intense competition
- Potential for product and service innovation
- Potential for supply chain optimization
- Potential for product/technology innovation
- Partnership or potential acquisition opportunities
- Opportunities within customer base
- Likely future threats to client's position
- Ways to maximize opportunities from legislative changes
Emerging Markets
The opportunities associated with the emerging markets (EMs) are obvious. Certain risks and hurdles, however, are often overlooked. The countries classified as EMs vary greatly and must be treated individually if the chances of long-term success are to be maximized.
Ascendant understands the complex challenges faced by MNCs when looking to enter, expand or partner within the EMs and works closely with them to identify the optimal approaches, strategies and tactics.
By partnering with Ascendant, clients are able to ensure that their emerging market strategies at a corporate, manufacturing, supply chain, R&D and product level are correctly aligned to the specific market in focus.
Program Evidence
- Macroeconomic indicators, local business environment, legislation and controls
- Current and forecast market size
- Supply and demand dynamics
- End-user segmentation
- Channel structure and key channel partners
- Current supply landscape and likely future entrants
- Unmet customer needs
- Incumbent suppliers' business models and local market strategy
- Key learnings from incumbent suppliers
- Local and regional supply chain strategies
- Route to market by product and identified regional variations
- Major customers by product and application
- Pricing and market levels
Program Insights
- Size of addressable market for client
- Key opportunities by product, segment and channel
- Key success factors required for entry
- Key barriers to entry
- Best fit product portfolio
- Pricing strategy
- Optimal production process and technology
- Optimal supply chain and raw material strategy
- Optimal production location and regional cost differentiators
- Level of investment required
- Expected ROI from market entry
- Optimum market entry point and business model for target market
- Partnership and M&A opportunities
- Likely changes to future supply and demand landscape that could affect entry strategy and timing
Business Model Benchmarking
Ascendant's business model benchmarking programs are designed to enable clients to better understand industry best practices associated with each or one part of their business model.
Our benchmarking programs help drive client specific optimization and improvement initiatives by identifying key differentiators, areas of competitive advantage and what 'best in class' looks like, together with recommendations for how identified key success factors can be applied to the client's own business.
Our business model benchmarking programs typically cover:
- Supply chain
- Production technology
- Distribution
- Sales and marketing
- Logistics
- R&D
Due Diligence
M&A represents an attractive growth strategy should the target be synergistic with the acquirer's business model and the integration be sufficiently effective.
Ascendant ensures attractive targets are identified in a timely fashion and, for those shortlisted, a thorough commercial due diligence exercise conducted (covert or overt), providing an evidence-based assessment of the potential to achieve the stated objectives.
Program Evidence
- Target identification based on specific assessment and attractiveness criteria
- Detailed analysis of the target business model and performance
- Assessment of the targets performance and differentiators vs. the key competition
- In-depth satisfaction survey with the target client and supplier base
- Analysis of the target's culture and leadership style
Program Insights
- Shortlist of targets, matching a strict set of attractiveness criteria
- Assessment of targets' ability to compete in the short to medium term
- Areas of potential investment and / or change required to increase competitiveness of the target
- Potential fit with the client's existing business model and growth strategies
Strategy Workshops
Strategy workshops help clients identify how to maximize opportunities through the facilitation of a dynamic workshop designed around a limited number of clearly defined, measurable and actionable business questions.
Too often, strategy workshops are structured around a set of generic analytical techniques that fail to provide the necessary insight or effective client responses. Ascendant differentiates its offering by customizing all aspects of the simulation exercise ensuring total alignment with the client's objectives and a resultant set of actionable recommendations.
Workshop Process
Planning and Objective Setting
- Proprietary design maximizing alignment with client objectives
- Comprehensive and effective program management
Evidence Collection (Pre-Reads)
- Robust intelligence gathering
- Synthesis and communication of information
Analytical Models
- Design of analytical models to channel and challenge existing perceptions​
Moderation
- Dynamic and interactive moderating skills
​Independent and Objective Analysis
- Robust analysis resulting in unbiased conclusions and recommendations
Workshop Coverage
- Commercial opportunity assessment
- Investment go/no go decisions
- Product development and launch strategies
- Sales and marketing strategies
- Market entry strategies
- Cost rationalization and process improvement strategies
- Competitive differentiation and positioning strategies
- Geographical expansion strategies