GainEdge strategic cost management solutions enable the client’s to increase the spend in areas that encourage sustainable growth. We also identify and cut down expenses in the low yield categories. With our strategic cost management programs, clients can eliminate the maximum of their non-obvious expenses. within a short time. This will free up more cash that could be put to use to drive growth and improve the ROI.
The Cost Management Process
The process is implemented in 3 steps:
In the first step, we help our clients determine search cost information. Our experts identify and assess the cost of commodities like raw materials, machines and labor that are put into use for making the product.
The second step involves calculating the costs by adding material, and labor costs. The direct cost will not be taken into consideration in case there is a cancellation, Overheads or indirect cost is not directly related to manufacturing but is a necessary expense. It includes the procurement team, administration, business space, taxes, infrastructure, etc.
The final step is the cost management procedure for actual cost reduction. Assessments are made between the calculated cost and the agreed price. It realizes the savings made in the process.
TCO (Total Cost of Ownership) cost management
Total Cost of Ownership (TCO)
Total Cost of Ownership Analysis is a method applied to find the lowest total lifetime cost for buying and operating goods or services. Not every purchase is considered for TOC. Products that require high maintenance or have high operational costs are subjected to TOC calculations. These include assets such as vehicles, software, buildings, machinery etc.
When you partner with GainEdge, we help you define the lifetime costs, create probable set-ups each with its TCO number. We compare the scenarios, pick up the best option and implement it.