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ARTICLE · 03 MAY 2024

Attacking Stubborn COGS Inflation With Digital Design-And-Source-To-Value (DSV)

In a period of heightened inflation, traditional quoting, auctioning, and negotiating approaches often are not enough to preserve margins.

United StatesConsumer Protection

In a period of heightened inflation, traditional quoting, auctioning, and negotiating approaches often are not enough to preserve margins. In our work with large and mid-sized clients in retail, consumer products, and industrial sectors around the world, we've seen one approach more consistent than any other in breaking open the supply chain to transparency, optionality, and improved costs: Digital Design-and-Source-to-Value (DSV).

What is DSV, and how is it different from Design-to-Value (DTV), which has been around for decades? Put simply, it offers a new approach to scoping customer needs and requirements in concert with suppliers rather than building something and hoping there is an audience for it (figure 1).

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