While price analysis is an elementary analysis that offers basic insights into price trends, cost analysis goes a step further by offering additional deeper insights into the cost elements that make up the price of the product or service.
When you start to customize products and services to meet your needs, you introduce additional costs into the supply chain, above and beyond the industry standard solutions. There may be some cases where industry standards and market benchmarks are absent to begin with. In such cases, cost analysis becomes the main analysis that can be conducted to determine a reasonable price.
Cost analysis enables you to understand cost and work with suppliers to effectively manage cost by identifying ways to produce the product or acquire the service at a lower cost.
Key Objectives:
- Understand cost breakdowns for products and services
- Develop detailed Bill of Materials compositions for products
- Develop detailed Statement of Work scoping for services
- Develop Should cost models for products and services
AIMDRIVE-AI leverages the power of AI to conduct comprehensive cost analysis for both products and services by enabling the following:”
Industry Cost Profiles (ICP)
Generate Industry Cost Profiles (ICP) for Manufacturing and Service Industries to understand the average percentage breakdown of price into its subsequent cost elements. Estimate ICPs for large enterprises as well as small and medium enterprises.
BETA Estimate critical cost elements and their cost drivers
- Generate comprehensive Bills of Materials (BOM) for products and Statements of Work (SOW) for services.
- Estimate cost drivers like unit prices, waste factors and required quantities to quantify direct material costs.
- Estimate cost drivers like wage rates, utilization factors and required hours to quantify direct labor costs.
BETA Should Cost Model
Generate automated Should Cost analysis using ANKLESARIA’s tried and tested should cost modelling process for thousands of products and services.