Cost Intelligence Philosophy : Unlocking Value to Your Bottom Line

 

Today, when most of the organizations are looking forward to adopt a cost cutting policy in an order to make maximum out of their efforts, it becomes imperative to first understand the concept of cost intelligence. Depending merely on cost cutting methodologies is never going to work in this fast-paced and competitive business environment. This post will provide you with an insight of Cost Intelligence Philosophy which is primarily based on three major cornerstones of rates which are discussed in detail.

Integrated Supply Chain

For any business, to attain its maximum efficacy, there are few important aspects which should never be ignored. The first one is strategic product innovation, a robust supply chain, responsive financial planning and of course logistics. An integrated supply chain needs to collaborate with as many areas as possible to meet certain goals like reducing cost, waste and production time. By aligning and integrating your supply chain, you can attain efficiency by moving from your team’s work at cross-purposes to seamlessly sharing information for an increase in cross-operational visibility and collaboration.

It acts as a perfect balance between your supply and demand and hence becomes a crucial factor to be considered. Eliminating various wastages and maintaining a sustainable supply chain will definitely result in higher profit margins.

Extended Contract Management Team

Contract management is another key aspect to maintain enhanced functionality of an organization. The contract interdependency includes different vendors, partners, customers or even employees, this process contributes, creates and utilizes contract data in the most efficient way. Especially when it comes to drive sales, it is now just not restricted to contracts only, rather, into a seamless process where data and information can automatically and seamlessly feed into each other.

An extended contract management team can standardize your process and procedures with a focus on execution and monitoring of a contract. Maximizing financial and operational performance and minimizing risks, involves tracking purchases against contracts to insure preferred suppliers are used, rates adhered to, and discounts and rebates collected. It focuses on improved compliance and rebate management with auto renewal and contract eliminations.

Cost Intelligence

This concept is primarily related to leading edge research in cost and economic modelling which helps you to gain real value for your money during constructional stage. A thorough and deep research into knowing the rates and how market prices affect buyers and their purchasing decisions, using authentic data to optimize your pricing strategy and thus, drive more conversions and profitability into your business. Breaking down your competitor’s data into more specific charts that will help you determine how competitive your store is regarding the state of the market. It is all about collecting, scanning and then leveraging that data in such a way that it provides a clear vision for making perfect pricing policies for attaining efficiency at its best.

Cost strategies are both a science as well as an art when it comes to its implementation. Hence, this whole new cost intelligence philosophy will give you a broadened approach to adopt the best practice in terms of cost efficiency.

Location: United Arab Emirates

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