Every day, you’re making decisions about the future of your business. From hiring new staff to setting strategic direction and embarking on new projects all the way down to the small administrative tasks that provide your team with the resources they need to do their work, you’re making decisions that set the course of your organisation.
These decisions can shape your company in a number of ways, both positive and negative. Understanding the varying impacts of each decision is vital – without the right information, it is all too easy for businesses to slip into reactive lines of thinking, taking the path of least resistance even where it doesn’t result in the best outcome or results in cost overruns.
Ensure that you’re making the smarter choice for your organisation. The key to striking the right balance in your decision-making is an in-depth cost analysis. When guided by the right partner, a cost analysis can assist in helping you better understand your options and the broader market. Streamline the supplier research stage, secure comparable and accurate quotes and make more informed decisions between different services with a cost analysis.
WHAT IS A COST ANALYSIS?
A cost analysis is the essential process of comparing the breakdown of prices provided by various suppliers or providers to a business. Costs are weighed against the benefits of choosing a particular product or service, and how this choice will help a business to reach its objectives.
Just as vital for everyday operations as when embarking on a major project, a cost analysis helps you make clear-eyed decisions about the non-core product purchasing decisions of your organisation. While valuable for helping to justify major capital expenditure to stakeholders, a cost analysis can also ensure that expenses associated with smaller, regular purchases such as uniforms, print materials, promotional items, office furniture and the like do not negatively impact your profitability.
Ultimately, the aim is to achieve the best price and service conditions on the market, whilst maintaining quality and supply efficiencies. The value of working with an intermediary like CostSmart to conduct due diligence is that it removes the administrative burden from your organisation, gives you access to industry insights and benchmarking all whilst allowing you to focus on the big picture and core activities while guaranteeing you’re getting an accurate picture of your options.
HOW A COST ANALYSIS CAN HELP YOU MAKE SMARTER BUSINESS DECISIONS
A cost analysis can ensure you’re getting the best value from your suppliers as:
Company managers can make better informed decisions, with access to real pricing data and industry benchmark pricing with an understanding of the actual structure of costs.
Having the right market knowledge could help to streamline operations and cut costs, with many companies carrying out a cost analysis and realising that their current supplier isn’t delivering as much value as others could – and making the switch to a more value-adding partnership.
Customer satisfaction can be increased, as companies can often pass on these savings or other advantages such as faster delivery or better product quality.
Streamlining your processes and cutting costs should be a priority at every level of your business, CostSmart recommends conducting a FREE cost analysis every 6-12 months across key areas of a business’s non-core products.
FIND THE RIGHT FIT WITH COSTSMART
Better understand your market and your requirements and take confident steps toward your goals with a cost analysis delivered by CostSmart. By focusing on helping your business to reach its goals, we generate an in-depth report on what suppliers and providers offer – covering their main offerings, differentiation factors, value propositions and price points.
Get started with our free analysis and discover how we streamline the process. For more information, call CostSmart on 1300 100 461 or send an email to [email protected] and let’s start the journey to cutting costs and making better business-critical decisions.