Cost Model Analysis: How a Food Packaging Company Lowered Raw Material Sourcing Costs With the Aid of SpendEdge
LONDON--(BUSINESS WIRE)--Mar 20, 2019--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their cost model analysis engagement for a food packaging company.
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Cost Model Analysis: Assessing the Impact of Each Cost Driver on the Overall Cost and Ensuring Low-Cost Raw Material Sourcing for a Food Packaging Company – SpendEdge (Graphic: Business Wire)
The client wanted to establish a better process to handle and store at least 1000 units of packaging materials in their inventory. The total engagement period that was agreed upon with the client was three weeks.
- Objective 1: The company wanted to analyze the impact of each cost driver on the overall costs and devise strategies to increase the value proposition for their customers.
- Objective 2: They also wanted to reduce excess inventory costs by better understanding the cost elements influencing their products.
- Looking for more information? Request a free demo and see how our solutions can help you analyze the impact of cost drivers in real-time.
“Cost model analysis helps companies to identify the benefits of a specific business strategy and the costs associated with the process. It also allows stakeholders to analyze the impact of each cost driver and develop better strategies to mitigate excess spend,” says Srinivas R (Manager – Procurement Services at SpendEdge)
Key findings and solutions offered
In a span of three weeks, the client – a leading food packaging company – obtained comprehensive insights into the costs incurred by their own goods. The solution offered helped them to:
- Determine the total cost as well as cost per activity cost for 1000 units of materials.
- Boost their negotiation capabilities and implement processes for low-cost raw material sourcing.
- Identifying factors that result in excess spend is crucial for businesses. Request a free proposal to access our complete portfolio of sourcing and procurement solutions today!
With SpendEdge’s help, the food packaging company was able to determine the costs associated with individual activities. Our analysis showed that external storage was a much better option for the client, especially for materials that are stored for a long time. The solution offered, helped the client to reduce costs related to the packaging system by 19%.
To access the complete case study on cost model analysis, contact our analyst team here!
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.
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INDUSTRY KEYWORD: MANUFACTURING PACKAGING RETAIL FOOD/BEVERAGE
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PUB: 03/20/2019 10:44 AM/DISC: 03/20/2019 10:44 AM