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Calculation tool that compares prices and manufactoring costs.
In the world of product cost management, purchasers must identify and realize potential savings even in the most challenging and complex market environments. Adopting a methodical approach that brings transparency into the data jungle can make a real difference. Whether you as a purchasing manager wish to drastically save time and achieve product cost reduction, or significantly reduce co2 emissions, NLPP is the purchasing analytics solution for you.
The nonlinear performance pricing method (NLPP) is a unique performance pricing solution that compares prices and manufacturing costs of components, assemblies, or products with performance characteristics. In contrast to traditional cost analysis, NLPP considers the appropriateness of prices and costs of a procured object in relation to its value and benefits.
ET Advisory helps companies achieve true Cost Orchestration by implementing NLPP. Start orchestrating your costs today!
In our Whitepaper Cost Orchestration with NLPP by ET Advisory, you will learn how NLPP works, discover all the benefits and read about how Bosch uses the NLPP method to determine the tool costs, among other things.
Universal Method
Non-Linear Performance Pricing (NLPP) is a new kind of decision-making approach in purchasing, engineering and sales.
Innovative
NLPP finally allows a different perspective looking at price & cost in relation to value, benefit & performance.
«Dark Data» to «Smart Data»
NLPP extracts the maximum insight from your product & service price data into highly accurate target price predicting formulas.
Calculate very precise target prices with worst and best benchmarks for any kind of products and services procured.
Analyze thousands of items in seconds and see potential savings right down to an individual item.
Predict the impact of strategic decisions such as changing suppliers, different quantity allocations or make/buy decisions.
Engineers calculate highly precise cost estimates in early development stage when no drawings or BOM is available.
No matter if you have hundreds or thousands of parts, NLPP can find technically or economically similar parts in seconds.
Understand how product performance changes impact the cost and which features it makes most sense to focus on.
Sales creates target group specific value based pricing models and shifts discussion about price to value.
Use NLPP precise target price formulas to calculate quotes in seconds and save a lot of time.
Ensure price consistency for your customer portfolio no matter who calculated a quote or offer.
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