ICT Industry Client Leverages Cost Benefit Analysis to Gauge the Cost Structure of Their Procurement Processes

Category Overview

Over the past few years, the rapid emergence of cloud computing technologies in several end-user industries including healthcare, consumer IT, and enterprises have contributed to the growth of the ICT industry. Also, these technological advancements and developments are forcing players in the ICT industry to offer more dynamic and robust solutions. Additionally, the significant progress in the field of wireless and mobile communication technology has created abundant growth opportunities for the ICT industry players.

However, according to the cost benefit analysis experts at SpendEdge, the increasing pressure to curtail administrative and management costs coupled with challenges in adequately planning and financing the use of development programs in the ICT industry is one of the principal reasons for the industry’s sluggish growth.

Consequently, to gauge the cost structure of their procurement processes across the supply chain and gain a stronger foothold, players operating in the ICT industry space have started adopting cost benefit analysis studies.

The Procurement Pain Point and Insights Offered

A global player in the ICT industry space with offices spread across several geographies was facing predicaments in identifying the procurement cost elements and its impact on the overall cost across the supply chain. As a result, the client wanted to gain strategic insights on the negotiation levers adopted by suppliers to ensure low-cost raw material procurement activities. Additionally, they wanted to devise a robust low-cost mix model to devise better negotiation strategies with their suppliers and cut down on the overall cost across the supply chain.

To address the client’s business issue, SpendEdge’s cost benefit analysis experts tailored a two-step research methodology, which involved primary and secondary research coupled with qualitative and quantitative data collection techniques.

This cost benefit analysis helped the ICT industry client gauge the impact of each cost driver on the overall cost and predicted the cost movements across the supply chain. Additionally, the client was able to reduce their maverick spends with the help of a robust low-cost mix model. This model also helped the client devise superior negotiation strategies with the suppliers.

Fundamental questions answered in this cost benefit analysis study include

Business Outcome

The cost-benefit analysis engagement aided the ICT industry client in identifying the key cost elements and gained more profound insights into the cost structure of the procurement processes across the supply chain. This helped them gain a competitive edge over the peers operating in the industry.

To know more about our cost benefit analysis solutions