The 70-3-2 concept is an innovative business model developed by Raytheon to optimize the customer supply chain process. The model divides customer requirements into three broad categories; 70 percent of the customer needs are addressed with commercial-off-the-shelf (COTS) products, 3 percent customized and 2 percent engineered to customer requirements. This model helps organizations to better meet customer requirements while reducing costs. The core value of the 70-3-2 model is based on the belief that customers can access innovate and cost effective solutions when combining off-the-shelf and customized services. By optimizing the customer supply chain, Raytheon is able to provide competitively priced products and services to its customers.