Category Cost and Pricing

How SpendEdge Category Intelligence Helps

Leveraging cost management to drive the big growth

By understanding and achieving cost management at a granular level, we enable a growing number of clients to define appropriate cost buckets and achieve best-in-class cost savings.

Unlocking opportunities for cost-efficient and highly secure deals

An in-depth understanding of the benefits and risks gained through alternative sourcing destinations is helping businesses make effective “go decisions” with respect to implementing low-cost country sourcing (LCCS) strategy.

Staying safe and staying informed about cost categories

Our expanding client base of MNCs and SMBs rely on our category pricing intelligence to keep abreast of price trends and compare it against expense data to make sense of the changing pricing dynamics.

Selecting strategic price points to stay competitive

Over two decades, our clients’ visibility of their suppliers’ pricing structures and associated risks has only gotten better, thanks to our detailed analysis of cost categories and risk exposures of competing brands.

Best practices for crafting category plans that work

Our experts carry out detailed assessments of the best practices at peer firms and how they measure up to industry standards. Our clients’ category pricing plans are premised on this incisive understanding.

Realizing more than just dollar savings from cost management

Since maximizing value from supply networks is the new normal, our experts work toward firming up cost management and category intelligence into a strategic function to generate best outcomes for clients in supplier negotiations.

Category Cost and Pricing Offerings

Commodity Price Trend and Outlook for direct categories

The supply-demand fundamentals of the commodities sector continue to be under stress from price volatilities and geographical factors. By keeping a close eye on commodity price trends, businesses can make more accurate decisions when it comes to budget planning and predict the overall direction of the market for commodities. As such, many businesses work with our commodity pricing teams to stay on top of commodity price outlook and get a foresight of global risks, and our insights are based on a large number of macroeconomic factors.

Compare Against Rate Benchmark

Before hitting the purchase button, CPOs these days want to be double sure that they are getting the best possible deals from suppliers. With rate benchmarking, getting the best insights on negotiated rates no longer a chance-based game but one rooted in conclusive quantitative data and key performance measures drawn from industry bests. Informed by micro-level understandings of factors shaping the market.

Impact of Macroecononomic Factors

Procurement organizations must stay tuned in to the macroeconomic determinants of commodity price trends and services prices. Just how many CPOs would have the bandwidth for that? Our experts take a more expansive view of the fundamentals driving the observed behavior of commodity price trends, and based on this, they undertake a detailed investigation of pricing, commodity price movements, and cost breakdowns. Procurement professionals are making fact-based decisions and navigating through tough times on the back of our research insights.

Cost Components and Price Drivers

Only a hierarchical breakdown of cost structure will reveal the hidden culprits contributing to procurement cost overruns. Identifying key cost drivers and components is at the heart of long-term and sustainable procurement decisions. Our experts offer accurate insights to help clients discover suppliers’ operational cost drivers (e.g., product units) as well as product cost drivers (e.g., materials), so they can source from the best vendor at optimal prices. This is contributing in no small way to our clients’ superior market position.

Why category cost management strategy is the sweet spot for your business

Cost management is the grossly overlooked but crucial piece in the procurement jigsaw that could assist in improved profitability. That’s all the more reason why you should devise an effective negotiation strategy – now! Our experts can help you craft it, right away.

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Featured Case Study

How SpendEdge Helped a Leading Fuel Production Company Standardize Procurement Costs in the Oil & Gas Industry

Client Challenges: The client faced difficulties in identifying key cost elements and analyzing the market scenario in the US oil and gas industry, compounded by dwindling oil reserves and complex supply chains.

Solutions: SpendEdge developed a comprehensive cost analysis model that standardized procurement costs by identifying major cost components, reviewing historical trends, and forecasting future expenses.

Results: The implementation of the standardized cost analysis framework enabled the client to navigate volatile market conditions more effectively, enhancing resilience and operational efficiency while making informed decisions.

Read the full case study