One cannot manage what he does not know. That goes for the costs management as well (Anklesaria). Through our methodologies, we help companies to increase competitiveness and develop long-term strategies by enhancing skill sets.
One of the first steps in the cost management journey is to understand and analyze your spend. This will provide your procurement organization with the categories to focus cost saving efforts on.
Cost Management system review
Cost Modeling
Purchase costs can represent up to 50% of overcall costs of a company. Managing efficiently a cost model is of a strategic importance and might help to build stronger relations with suplliers.
Cost models serve to:
- Educate the user in the cost structure of a product/service being procured
- Engage a supplier that has not provided any cost information
- Ensure that cost discussions are based on fact and logic
- Ensure that cost discussions are based on fact and logic
