Teardown-to-margin Improvement: The Modern Playbook For Direct Materials Sourcing Using AI & Design-to-Value

Turning product teardowns into a direct-material sourcing cost intelligence engine

Procurement leaders are facing an endless cycle of disruptive forces. Challenges, including spiking input costs, are compounding as product margins evaporate. Responses designed for a world of stable trade flows and predictable commodity prices no longer work.

Outdated cost models do not accurately reflect the cost structure your procurement team currently manages. Procurement teams must shift from managing spend to understanding it in real time – at the component level and against competitor data.

While many product-centric organizations already have Design-to-Value (DTV) programs in place, most still suffer from the same organizational failures. Disassembly is an event rather than the first step in an intelligent system. After weeks spent taking the product apart, cataloging, and costing, companies realize that the next generation of the product is already in tooling. It's too late for the teardown