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How do you identify savings in procurement

ud83dudcb8 Want to uncover hidden savings in procurement? Use data-driven cost & price analysis with AI! ud83dudcc9ud83eudd16<br>ud83dudd17 https://medium.com/@AIMDRIVE-IT/how-do-you-identify-savings-in-procurement-337e59fce38d<br>ud83cudf10https://aimdrive.com/?utm_source=image_sites&utm_medium=image&utm_campaign=image_submission<br>#Procurement #AIMDRIVEAI #CostSavings #Sourcing #SupplyChain #AI<br>

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How do you identify savings in procurement

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  1. Q &A

  2. HOW DO YOU IDENTIFY SAVINGS IN PROCUREMENT?

  3. AIMDRIVE-AI SOLUTION: Procurement spend analysis is a critical step in identifying cost-saving opportunities and optimizing spending. Once spend analysis is performed and major categories of spend are identified, the next step is to dive deeper into price analysis and cost analysis to ensure competitiveness and uncover savings opportunities. Here’s how you can do it:

  4. AIMDRIVE-AI SOLUTION: 1. Price Analysis: o Compare the prices you’re paying with market benchmarks to determine if they are competitive. o Analyse trends in price changes over time to identify whether your prices are in line with market averages or if there’s room for negotiation. o For example, tools like AIMDRIVE-AI provide market average price movement data for 500+ product and service industries, helping you benchmark your prices effectively.

  5. AIMDRIVE-AI SOLUTION: 2. Cost Analysis: o For non-standard or customized purchases where industry benchmarks may not exist, cost analysis becomes essential. o Start by understanding the average cost structure of the products or services you’re sourcing. This can be done using Industry Cost Profiles (ICP), which break down the price into its cost elements (e.g., materials, labour, overhead).

  6. AIMDRIVE-AI SOLUTION: o Use this data to build Should Cost Models, which estimate what the product or service should cost based on its components. Compare this with supplier quotes to identify discrepancies and negotiate better deals. o AIMDRIVE-AI simplifies this process by automating the creation of Bill of Materials (BOM) and providing Should Cost Models based on AI-driven data and industry benchmarks.

  7. AIMDRIVE-AI SOLUTION: By combining price analysis and cost analysis, businesses can ensure they’re paying competitive prices and identify opportunities for cost reduction.

  8. AIMDRIVE-AI SOLUTION: ? AIMDRIVE-AI: https://aimdrive.com/ AIMDRIVE-AI

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