| • Understand what drives the overhead expenditure of the vendors to identify cost-saving initiatives through gaining complete visibility into cost elements such as up-front costs, ongoing costs, costs to run etc.,
• Spot additional benefits such as tax claims, rebates, energy savings, etc., that can be used to select the most optimal solutions |
| • Choose the solution that provides you maximum benefit. For example, a product requiring high initial investment or up-front costs may still be beneficial due to low maintenance cost over the ownership period compared to alternatives with lower initial investment
• Conduct value engineering to replace high-cost items with alternatives that are cost effective and to achieve continuous improvement and align with best cost sourcing philosophy |
| • SpendEdge’s insights help you figure out if making or outsourcing a product or service is better. We also help you choose between global sourcing and low/best cost country sourcing strategies
• Our detailed cost engineering techniques for TCO supplemented with granular insights will aid in decision making and improve operational efficiency
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Our experts have over 20 years of experience in insights generation. This has helped us to offer accurate TCO analysis to several of our Fortune 500 clients. Our clients have constantly realized the benefits of TCO to achieve incremental savings, competitive edge through identification of cost saving opportunities.
Our experts spare no effort to ensure they deliver high-quality outcomes in the shortest time possible. They make sure to include all factors to consider in TCO analysis to go as granular as possible. Time constraints have never held us back from ensuring attention to detail. All aspects of a product/service are taken into consideration while building the TCO calculator.
Special efforts are taken to ensure the clients have the best understanding of all cost elements involved when owning a product or service. Our experts conduct thorough value engineering to identify specific cost elements such as manufacturing cost, labor cost, raw material cost, transportation cost etc., to provide best granular insights.
TCO analysis focuses only on the cost and tends to overlook benefits offered by products/services. However, our benchmarking experts help clients get the complete picture as we are known for offering one-stop solutions. This has helped several of our clients use our reports as efficient TCO calculator and create value beyond cost savings.
Challenge: The client faced declining market shares due to intense competition and needed to improve their negotiation strategies with suppliers to ensure low-cost raw material procurement.
Solution: Our cost-benefit analysis (CBA) provided insights into the cost structure across the supply chain, enabling the client to develop superior negotiation strategies and implement a low-cost mix model.
Result: The analysis led to a projected reduction of approximately 5% in material costs and 5-10% in supplier management costs, significantly enhancing the client’s overall economic benefit and decision-making capabilities.
Read more Know about SpendEdge ProcurementAt a time when cost transparency is key, we can offer a thorough TCO analysis that will help find alternatives that are not only cost effective but also add business value.
Talk to Our Experts
Gain insights related to your key spend categories, ranging from important updates, outlook, and engagement models, to in-depth supply-chain risk analysis.
Improve supplier selection decision making and supplier relationship management through our services covering supplier identification, supplier updates and alerts, and risk and sustainability analysis.
Improve strategic decision making through our services related to negotiation advisory, best practices, risk mitigations, supplier KPIs and SLAs, and cost optimization mechanisms.
Keep a close look at price movements and forecasts for key commodities and the impact of different cost drivers to formulate effective cost reduction strategies.