πŸš€ Ready to benefit from strategic reuse?

By Abhi Aklujkar

Classification value proposition – part 1

In today’s rapidly evolving global markets, high-value product innovations are often swiftly replicated by competitors worldwide.

Manufacturers across various industries strive to accelerate their rate of innovation, but many face significant challenges:

🚫 Unnecessary duplication and wasted effort – at every stage of the product lifecycle

🌐 Difficulties in establishing and integrating resilient supply-chain networks of global suppliers and strategic partners, which must be agile, adaptable, and capable of adjusting practices and data management strategies

πŸ“œ Struggles to meet regulatory requirements and keep up with changes

Organizations that successfully overcome these challenges are more likely to manage data effectively, gain a competitive edge, and build stronger relationships with regulators and customers

Insights from Aberdeen Group study

A study of various industry segments for business processes has shown:

πŸ•’ 80% reduction in design time for new product designs that heavily rely on reuse

πŸ”„ 30-40% of manufacturers’ parts are duplicates or have acceptable substitutes

πŸ’² The annual carrying cost for each new part ranges from $4,500 to $23,000

πŸ“Š A part reuse strategy, including classification with advanced search tools, significantly reduces part redundancy

The need for classification

Organizations often resist change, but a robust reuse system, driven from the top, maximizes the reuse of a company’s product dataβ€”standard parts, technology data, designs, processes, manufacturing equipment, etc. Increased reuse results in immediate benefits and eliminates redundant processes.

βœ… Tried and tested components and designs have predictable quality

πŸ”„ Redundant processes such as quality testing and establishing new supply chains are minimized

πŸ“‰ Reduced inventory and elimination of duplicates cut down recurring costs associated with carrying excess inventory

πŸ“¦ Higher volumes with existing supply chains result in better costs

πŸš€ Fosters product innovation and faster time to market

A sound reuse strategy

Organizations need to optimize every component and process across their product portfolio. A robust reuse strategy distinguishes between simple reuse and a common platform approach.

Implementing this strategy requires careful planning, investment in classification technologies, and a commitment to changing traditional business practices.

Approach 1: standardization and reuse at the component level

  • Standardization helps reduce costs with off-the-shelf standard components available in volumes.
  • Benefits are constrained at the lower design process level.

Approach 2: design for standardization

  • Proactively build around common platforms, reusing sub-systems and systems, not just individual components.
  • Greater benefits with reuse at a higher level in the overall design process.

A good reuse strategy leveraging both approaches significantly impacts the customer’s bottom line.

In summary

Recent geopolitical turmoil has highlighted the importance of:

πŸ”„ Optimizing reuse with existing designs and reducing inventory

🌐 Establishing diverse and resilient supply chains

πŸ” Driving down costs through a circular economy

Classification is essential for establishing a healthy and resilient business amidst present risks and volatility.

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This article first appeared on the Siemens Digital Industries Software blog at