CASE STUDY

Cost Modeling and Procurement Solutions Help a Leading Mobility Service Provider

Jun 14, 2017

Category Overview

Mobility service providers help buyers move their commercial and residential goods either domestically or internationally. These companies offer all inclusive services for re-locations including packing, loading, moving, unloading, unpacking, arranging of items to be shifted, and value-adds such as visa and immigration, insurance, employee, storage, repatriation assistance, and accommodation services.

The Procurement Pain Point

One of the leading mobility service providers for household goods was looking for a procurement market analysis in terms of procurement best practices, pricing models, and key cost drivers in the industry. The core focus was to identify major gaps in supplier market landscape and cost modeling factors for better decision making and strategy formulation. We at SpendEdge, offer a comprehensive and detailed analysis of the category in terms of major cost components, supplier engagement models, and should-cost analysis.

Procurement Insights Offered and the Outcome

To meet the requirements specific to the needs of the client, we carried out an in-depth primary and secondary research. With our vast database of secondary research resources, highly experienced and dedicated analysts, and critical inputs from industry experts, we incline our research to help the client with deep-dive market insights. Furthermore, we follow a three-step research process which includes establishment of cost elements mentioned in the annual reports provided by the listed suppliers, followed by extensive secondary research to understand the percentage break for each cost element within the overall cost structure.

Our procurement market analytics team evaluated the various cost drivers such as variation in sub-contractor fee, increase in minimum wages, adoption of new technology, and volatility in consumable material and operational costs to design the cost model and gain insights on supplier market landscape.

Business Impact

The core focus of this study was to analyze the crucial aspects of cost modeling to get a clear understanding of the cost drivers, cost categories, and cost-saving opportunities. Furthermore, this study also helped the client with a better understanding of supplier selection and evaluation criteria and insights that can lead to optimization of category spends.

This procurement intelligence study offered the client category assessment, supplier market landscape analysis, and procurement best practices.

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