CASE STUDY

Cost Model Analysis Helps an Automotive Lighting Manufacturer to Understand the Cost Mix of Suppliers and Achieve Better Cost Savings

Sep 4, 2017

Category Overview

Lately, the automotive lighting industry has been witnessing robust growth due the rise in the demand for automotive vehicles and cost-effective and energy-efficient lighting systems that enable a safe driving experience. Additionally, the recent increase in the purchasing power of individuals is also creating more opportunities for the growth of this industry. However, according to the cost analysis experts at SpendEdge, the cost of today’s automotive lighting systems are greater than those used earlier. Moreover, it has been noted that the increasing use of LED technology is bringing overall costs down, but further economic streamlining will be required to achieve a strong foothold in this market space.

Aas a result of such challenges, automotive lighting firms across the globe have started opting for cost analysis studies to understand the cost structure and mix of the suppliers and achieve better cost savings across the supply chain.

The Procurement Pain Point and Insights Offered

A leading automotive lighting manufacturer wanted to identify the cost elements across the supply chain. Additionally, the client wanted to evaluate the impact of the cost drivers on the overall cost. They also wanted to gain insights on the cost mix implemented by suppliers to ensure low-cost raw material sourcing and better negotiation strategies. Furthermore, the client also wanted recommendations on lowest cost mix to achieve better cost savings.request free proposal

To cater to the specific category requirements of the automotive lighting company, the cost analysis experts at SpendEdge followed an in-depth two-step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies to address the client’s issue. During the course of this cost analysis study, the automotive lighting client was able to identify and measure the cost elements across the supply chain. Additionally, the client was able to estimate the impact of each cost driver on the overall cost. The cost analysis study also helped the client gain insights on superior negotiation and sourcing strategies to source raw materials; thus, helping the automotive lighting client to achieve better cost savings.

Key questions answered in this cost analysis study include

cost analysisBusiness Outcome

The cost analysis study helped the automotive lighting client understand cost mix of suppliers and achieve better cost savings. Additionally, the client also gained recommendations on superior negotiation strategies with their suppliers to serve their customers better.

Want to know more about our cost analysis solutions?

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