Easy Source Cost Modeling and Analysis (CMA)

Most companies operate with razor-thin margins, which make it imperative for them to control costs and enhance the bottom line.

Managing cost data provides an exceptional control and flexibility on your supply chain and your process costs. This management of cost data works best when supported with multiple costing methods, extensive and precise accounting and widespread analysis. In all, cost modeling and analysis involves harnessing the knowledge within an organization residing with individuals across domains.

The need for better automation tools for managing eProcurement costs coincided with the enabling technology of the Internet and CMA was created. The CMA facilitates better control of costs, reduces process costs and process time and also improves profitability.

Our Proposition

eProcurement costs are typically operational costs. Savings in this area can be realized by automating and streamlining the purchasing process, and also by lowering the average cost of generating a purchase order. Cost savings result from negotiated discounts with preferred vendors, savings due to market competition among vendors and savings through the elimination of maverick buying.

This tool harnesses the knowledge of cost data, within an organization and also initiates the following processes for cost optimization:

• Warehouses the information
  
• Studies and analyzes trends,
  
• Creates optimum cost models,
  
• Builds costs accordingly from supplier process costs,
  
• Compares costs,
  
• Maintains suppliers financial info,
  
• Compares suppliers, and
  
• Manages and controls supplier performances.

The Cost Modeling and Analysis tool encompasses the functions of different tools such as costing, negotiating, knowledge sharing and capturing, analyzing, forecasting and reporting. As a result this tool effectively explores areas of cost reduction, best costing methods and ideal manufacturing process.

Key Benefits

The tangible benefits, of managing cost data, are plenty. To mention some of them, the system has:

• A standard automated process
  
• Personality independent costing method
  
• Knowledge sharing
  
• Analytical report submission
  
• Information availability
  
• ERP connectivity
  
• Cost forecast