The Business Challenge
A global medical devices industry client wanted to gain insights into the negotiation levers implemented by suppliers to ensure low-cost raw material sourcing activities. Additionally, the client wanted to identify cost elements across the supply chain and assess its impact on the overall cost structure. Also, with the help of a robust, low-cost mix model, the client wanted recommendations to cut down the overall cost and develop better negotiation strategies with their suppliers.
The cost-benefit analysis experts at SpendEdge tailored a comprehensive two-step research methodology, which involved primary and secondary research methodologies coupled with qualitative and quantitative data collection techniques to address the client’s issue.
During the course of this cost-benefit analysis engagement, the medical devices industry client was able to measure the impact of each cost driver on the overall cost structure. Additionally, the client was able to forecast the cost movements across all cost elements. The medical devices industry client also devised a low-cost mix model which helped them reduce their maverick spends across the supply chain.
The cost-benefit analysis engagement assisted the client in identifying the major cost elements and gain a deeper understanding of the cost structure of the supply chain. The medical devices industry player was also given strategic insights into devising better negotiation strategies with their current suppliers.
Medical Devices Industry Overview
Lately, the medical devices industry has been proliferating owing to the increase in the number of several types of medical conditions across the globe. Moreover, the intense competition in the medical devices market space has resulted in manufacturers to adopt upgraded technologies and establish themselves in this market space. However, according to SpendEdge’s cost-benefit analysis experts, stringent regulations on the quality and reimbursement policies for medical devices across the globe are compelling firms in this market space to exhibit a high level of cost-effectiveness for their product offerings.
Consequently, to gauge the cost structure across the supply chain and develop superior negotiation strategies with their suppliers, medical devices industry players have started adopting cost-benefit analysis solutions.
Get in touch our experts for detailed insights on cost benefit analysis.