Investor Presentaiton
4 Competitive offering: Sourcing contribution (2/2)
■ Volume
•
Bundle approach: different products under one negotiation
• Total cost of ownership: improve full product life cycle cost under
one negotiation and protect our margin on after sales
■ Design to cost
Savings per lever
20%
Low cost
countries
■Design to cost
50%
■ Volume
.
Catalogue approach: on sub-systems: HVAC, doors, etc.
30%
■Low cost countries
•
Steady increase of sourcing volume in India
ALSTOM - February 2016 - P 46
Objective to increase sourcing savings to €250m /year (cost to complete)
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