CASE STUDY

Cost Benefit Analysis Assists a Renowned Auto Parts Manufacturer Gauge the Cost Structure of Their Procurement Processes

Dec 9, 2017

Category Overview

Lately, the revenues generated by the automotive industry have nearly doubled and is witnessing the entry of numerous car manufacturers across countries such as India, China, and Russia. Additionally, with the rising per capita income and urbanization, the aftermarket sales of the auto parts have increased, and leading businesses are investing in auto parts to improve the efficiency of their products while being cost-effective. As a result, companies operating in the auto parts manufacturing space have started advocating the use of robust cost benefit analysis solutions. Cost benefit analysis solutions help companies operating in the auto parts manufacturing space to reduce expenditures across the supply chain and meet the rising demand of the customers.

With over 13 years of expertise in offering a wide range of sourcing and procurement solutions, SpendEdge’s cost benefit analysis specialists help companies operating in the auto parts manufacturing space to gain a deeper understanding of the cost structure of their sourcing and supply chain activities across the supply chain and business units.

The Procurement Pain Point and Insights Offered

A renowned auto parts manufacturing client with business units spread across several geographies was facing predicaments in identifying the cost elements across the supply chain and assess its impact on the overall cost. request free proposalAdditionally, the client was facing challenges in devising a low-cost mix model to cut down the overall sourcing and procurement costs. Furthermore, they wanted to gain actionable insights into the negotiation levers adopted by suppliers to reduce the lead time for their procurement processes.

To help the auto parts manufacturing client overcome their predicaments and assist them in reducing the lead time for their procurement processes across their business units, SpendEdge tailored an integrated research approach which included primary and secondary research coupled with quantitative and qualitative data collection methodologies.

During the course of this cost benefit analysis engagement, the auto parts manufacturing client was able to gauge the impact of each cost driver on the overall spend and predicted the cost movements across the supply chain. Additionally, the client implemented a low-cost mix model which enabled them to reduce their maverick spends.

Fundamental questions answered in this cost benefit analysis study include

Business Outcome

This engagement helped the auto parts manufacturing client gain more profound and actionable insights into the cost structure of their sourcing and procurement processes and enabled them to devise superior negotiation strategies with suppliers and subsequently reduce the overall costs.

To know more about our cost benefit analysis solutions

request free proposal

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