CASE STUDY

Cost Analysis Report for a Consumer Electronics Manufacturer

Sep 5, 2018

Need for a Cost Analysis Template

A cost analysis template is the most essential tool for conducting a cost analysis on the potential business decisions. By devising an appropriate cost analysis template, an organization will be in a betterContact US position to avoid potential biases that lead to poor business decisions. However, the use of a flawed model can prove to be a costly misstep in any industry. A cost analysis template can help analyze both direct and indirect spend categories, including tax, facility expansion costs, outsourcing/consulting fee, annual recurring cost, and similar expenses.

Steps to Generate a Cost Analysis Report

Step 1: Identify the key cost elements and their associated benefits

Step 2: Assign a monetary value to each identified cost-benefit

Step 3: Assign a monetary value to the cost element

Step 4: Perform a detailed comparison of the cost factors and their associated benefits

Step 5: Generate a detailed cost analysis report


About the Client

The client – is a prominent player in the American consumer electronics market space. The consumer electronics manufacturer is a market leader in terms of innovations and well known for developing new and innovative products within the global consumer electronics market space.


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Client’s Challenge

The consumer electronics manufacturer was looking at venturing into the smart devices segment by investing a considerable sum in the new segment, which they believed had maximum potential in today’s competitive market. Owing to this decision, the client wanted to create a detailed cost analysis report that generates a detailed comparison of total costs and their associated benefits. To help them do so and generate a detailed cost analysis report, the consumer electronics manufacturer approached SpendEdge to leverage its expertise in offering cost analysis solutions.

Engagement OverviewDemo

To help the consumer electronics manufacturer justify their spend, our spend analysis experts conducted a detailed survey to identify the key investment areas. The initial phase of this engagement revolved around the development of a precise cost analysis template to gauge spend effectiveness. A detailed comparison of each cost factor and the value delivered also helped them outline the future course of action.

This engagement was concluded with the submission of a detailed report that included information on the cost elements and its subsequent impact on the delivered business value. This proved to be beneficial in estimating the total value of cost elements in their new venture.

Benefits Offered

The offered solutions turned out to be an eye-opener for the client since it listed out the pros and cons of their investment. The generated report also helped them analyze different scenarios while making precise investment decisions. The cost analysis solutions also helped them make minor tweaks in their investment plan in order to drive maximum profits.


Would you like to learn more about our spend analysis solutions? Get in touch with our procurement experts today!

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