Cost Benefit Analysis for A Telecom Industry Client Helps Increase Revenue by 50% – A SpendEdge Case Study
Engagement Overview: A leading player in the telecom industry wanted to keep pace with the growing market competition by devising an appropriate cost model to meet their business goals. The telecom client was looking at leveraging cost benefit analysis to gain comprehensive insights into the various cost models prevalent in the industry. To do so, […]
A leading player in the telecom industry wanted to keep pace with the growing market competition by devising an appropriate cost model to meet their business goals. The telecom client was looking at leveraging cost benefit analysis to gain comprehensive insights into the various cost models prevalent in the industry. To do so, the telecom industry player approached SpendEdge to develop a superior understanding of the cost structure of their supply chain processes. A thorough quantitative analysis of various cost elements within their supply network was carried out to identify the best suitable cost model.
About the Client:
The telecom industry client was facing several challenges in cost forecasting and in developing a lowest cost mix model to reduce their overall costs and improvise negotiation strategies.
How did SpendEdge Help the Client?
- Step 1: Data gathering and setting the framework for analysis
The first step revolved around the collection and review of collected data to identify the various cost factors contributing to direct and indirect spend within the supply network. The main objective of this step was to gather relevant data that is required to devise an effective cost model.
- Step 2: Identification of processes and activities associated with the cost drivers
This step included a detailed review of the gathered information to associated supply chain processes with the potential cost drivers. By doing so, the telecom industry client was in a better position to identify the characteristics of the cost model in terms of – business objectives, decision levels, and accuracy.
- Step 3: Recommendation of a suitable cost model
The three-step approach involved an iterative process of finding the lowest cost model with the essential cost elements and function requirements to suit the purpose. Leveraging our cost benefit analysis based solutions enabled the telecom industry client to consider what-if scenarios and predict commodity cost by manipulating the key cost drivers. The developed cost benefit analysis model enabled the client to improve business productivity by helping them make valid predictions to enhance pricing decisions.
Key questions answered in this cost benefit analysis engagement include:
Benefits of the Engagement:
The cost benefit analysis experts at SpendEdge helped telecom industry clients to reduce costs associated with supply chain activities by comprehending the cost structure at various organizational levels. Cost benefit analysis also enabled the client to identify the appropriate cost model for effective price forecasting. This helped them increase their overall revenue by up to 50%.
Why incorporate cost benefit analysis in the telecom industry?
In any industrial segment, it is essential to deploy a systematic approach to evaluate the strengths and weakness of procurement activities. Cost benefit analysis enables organizations to achieve maximum savings by helping them identify the best approach to do so.
Moreover, analysis of today’s global market conditions reveals that every business decision in the telecom industry requires a cost benefit analysis. This is because it helps identify the risks involved in investments and prevents the time wasted by taking up unprofitable tasks. Also, understanding the benefits of various cost models can enable organizations to set benchmarks and goals to enhance efficiency.
When making a crucial business decision, especially in the telecom industry it is imperious that the key decision makers understand the underlying cost structures and benefits associated with a cost model. SpendEdge’s cost benefit analysis is a simple technique that enables organizations to make appropriate financial decisions to drive profitability.
SpendEdge’s extensive experience in cost benefit analysis across industries and topographies makes it the ideal solution provider to help companies reach their goals. Our experts ensure global coverage by leveraging information from multiple data sources. Also, our industry expertise enables us to work impeccably with your organization to conduct competitor and industry benchmarking assessments that generate valuable insights to capture a greater market share.
To know more about our cost benefit analysis solutions