LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of supplier market intelligence solutions, has announced the completion of their cost model analysis for an MRO company in the airline industry.
The company wanted to improve its existing costing system to meet stakeholders’ financial goals. The key objectives they aimed to achieve through this engagement are mentioned below:
- Objective 1: The company wanted to improve the total cost of ownership mechanism to forecast procurement costs.
- Objective 2: They also wanted to analyze the impact of each cost driver on the overall cost.
- Wondering how companies can improve their costing systems and accurately forecast procurement costs? Request a free proposal to access our complete portfolio of cost model analysis solutions for free!
“Performing cost model analysis helps companies to determine the feasibility of investment opportunities by applying the time value of money,” says Srinivas R, Procurement Manager at SpendEdge.
Key findings and solutions offered
In collaboration with SpendEdge, the client – a well-established MRO company in the airline industry – allocated costs to activities specific to the procurement process and improved accuracy in the total cost assessment. The solution offered helped them to:
- Negotiate better prices with suppliers and ensure low-cost raw material sourcing.
- Improve the airline procurement processes and meet standards set by the airline industry.
- Want to know how performing cost model analysis can help you improve the procurement process? Get in touch with our experts now!
Outcome: The cost model analysis performed by the experts at the SpendEdge helped the MRO company to identify the costs and benefits associated with their projects. This helped the client to make better strategic decisions and plan ahead of any contingencies. The cost model analysis engagement further helped the client to improve the existing costing system and predict the total cost of operations involved in the procurement process. This enabled the client to implement a comprehensive activity-based costing method, accurately calculate total costs, and allocate costs to the activity specific to the process.
Want to gain more information? Request a free demo to know how we can help you perform cost model analysis and gain detailed insights into the activity-based costing method.
SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions.
Want to gain detailed insights? We’re here to help you out! Tell us more about your business challenges.