Although factors such as high degree of price competition, supply chain, inflation, and efficient inventory management pose a challenge for the specialty industry, increasing disposable income, population, GDP, and consumer expenditure are expected to boost the industry’s growth in the coming years.
The client wanted a detailed outline of the potential risks and gains in the global specialty retail industry. The firm’s supply chain management experts recognized the benefits of leveraging a cost benefit analysis solution. Additionally, the client wanted to gain detailed insights and recommendations that would help them achieve the lowest possible cost mix.
A cost benefit analysis was carried out to help the client identify challenges in supply chain functions. The engagement helped the client to identify the essential cost elements across their supply chain. Additionally, the client was able to determine the ability of their current cost model tools to meet stakeholder’s needs for evaluating financial data across their business units.
About the Client
The client, a renowned specialty retail industry firm based out of the US.
The specialty retail player was facing challenges in evaluating the influence of each cost driver on the overall cost of the products.
How SpendEdge Helped the Client?
Step 1: Evaluated the potential revenues and costs
The cost benefit analysis experts at SpendEdge tailored an in-depth research methodology. The comprehensive research approach included primary and secondary research coupled with qualitative and quantitative data collection procedures
Step 2: Compared sourcing techniques based on the actual financial costs and benefits
Analysts compiled information from a wide array of secondary sources including company presentations, interviews, and industry forums within the global retail industry space.
Key questions answered in this cost benefit analysis engagement include
Benefits of the Engagement
Our cost benefit analysis engagement helped the specialty retail player to compare the likely costs and benefits of the sourcing strategy and choose from what offers the greatest net benefit. The engagement also helped the client to evaluate the strengths and weaknesses related to organizational spend. Furthermore, the client determined the best approach to achieve maximum benefits while improving overall savings.
Why leverage cost benefit analysis?
Cost benefit analysis is advantageous, simply because they simplify complex business decisions. Different business projects might involve different types of expenses and details at a low level, but a cost benefit analysis frames all projects in simple terms – total benefits minus total costs, equals net benefit.