BOM Optimization: How to Cut Component Costs
Reduce BOM cost and secure lead time through substitution, consolidation, localization and supply planning.
BOM Optimization
Material cost is often the largest cost item. The following methods significantly optimize the BOM.
Substitution & Compatibility
Select pin-to-pin compatible alternatives that meet parameters while assessing availability and long-term supply.
Localization
After reliability validation, local chips reduce cost and shorten lead time.
Procurement & Inventory
Balance cost and risk with volume pricing, safety stock and early ordering of long-lead items.
Jinzer offers professional BOM optimization services.