Cost Components and Price Drivers
Effectively manage costs and improve business outcomes by leveraging our proficient breakdown of key cost components and price drivers.
Contact usHow your business benefits
Identify major cost components for the product or service under focus
- Break down total cost into various components using pie charts and graphs
- Understand the percentage contribution of each component to the total cost
Evaluate cost drivers for each component
- Get a better understanding of the factors that drive costs
- Evaluate industry trends related to cost components
- Obtain accurate insights into components such as raw materials, labor, wages, overheads, etc.
Strengthen procurement decision-making
- Provide procurement teams with accurate insights to inform decision-making
- Proactively plan purchases to save costs and ensure business continuity
Increase your bargaining power over suppliers
- Leverage detailed cost breakdown analysis to get the best possible deals
- Achieve cost advantages by improving contract management
Counter cost and supply risks
- Equip procurement teams with valuable information to effectively foresee risk
- Improve supply chain performance by mitigating risk
Why choose SpendEdge?
Achieve Procurement Excellence
Thorough and accurate evaluation of product and service costs is the first and arguably most crucial step toward achieving organizational goals. It is vital for procurement teams to understand the cost components and drivers for each component throughout the lifecycle of the product or service to make decisions that will serve the needs of customers while ensuring profitability.
Effectively Decipher Cost Complexity
Costs are as volatile as they’ve ever been in light of recent market developments as well as the pandemic crisis and overall political unrest. Simply identifying the value of each cost component alone will not be sufficient to make the right decisions – our seasoned analysts provide you with a comprehensive analysis of the factors that drive each cost component along with accurate insights into potential price movement in the near future.
Perfectly Balance Customer Needs with Organizational Profitability
When studying cost drivers and making associated decisions, harmonizing customer requirements with overall profitability is of paramount importance. Our team of experts will not only provide you with a detailed breakdown of the cost components and price drivers, but also highlight actionable recommendations covering different scenarios to ensure that you achieve desired outcomes.
Evaluate Industry-wide Sourcing and Procurement Best Practices
In a rapidly changing environment, it is imperative for organizations to be aware of the best practices related to sourcing and procurement to keep up with peers and potentially gain a competitive edge over them. Our analysts perform deep-dive analysis to offer clients relevant insights using case studies that highlight some of the most recent and successful procurement process improvements.
Featured Case Study
How SpendEdge Helped CPG Giant Streamline Contract Manufacturer Selection Process
Challenge: Faced with intense competition and the need to improve profit margins, our client turned to SpendEdge for assistance in overcoming their business challenges. One of the main strategies involved migrating cost-intensive operations to low-cost destinations.
Solution: Our team at SpendEdge assisted the client in streamlining their contract manufacturer selection process. Leveraging our expertise and market research methodology, we identified key contract manufacturers for the client’s ready-to-eat product line.
Result: The client successfully addressed their business challenges and achieved improved profit margins and reduced operating costs. All the while, also enhancing product quality and expanding manufacturing capabilities.
Talk to One of Our Experts
Insufficient or inaccurate information about costs can lead to severe long-term ramifications on business growth and reputation, which increases the need for an exhaustive cost analysis that covers all bases.
Talk to our expertInsights
Category Intelligence
Gain insights related to your key spend categories, ranging from important updates, outlook, and engagement models, to in-depth supply-chain risk analysis.
Supplier Intelligence
Improve supplier selection decision making and supplier relationship management through our services covering supplier identification, supplier updates and alerts, and risk and sustainability analysis.
Strategy Support
Improve strategic decision making through our services related to negotiation advisory, best practices, risk mitigations, supplier KPIs and SLAs, and cost optimization mechanisms.
Category Cost and Pricing
Keep a close look at price movements and forecasts for key commodities and the impact of different cost drivers to formulate effective cost reduction strategies.