For procurement, gaining insight into the drivers of costs is always important — but even more so during times of change and uncertainty. However, because procurement teams typically only analyze the cost drivers of major purchases, the potential for wrong decisions that lead to harmful business outcomes remains a risk.
Leading procurement teams rely on two tactics to continually identify cost drivers across a wider range of buys:
- Gain hidden insights on supplier pricing by helping employees to harness previously neglected but valuable data sources.
- Identify the business behaviors leading to elevated prices by using a simple Cost-Driver Assessment Template to determine the factors that may be responsible for bad decisions.
Download our new insight, Proactive Cost Driver Analysis in Procurement to understand how to manage costs and minimize risks faster and more effectively across the organization — at any stage of the economic cycle.