To respond to the dynamically changing market conditions, strategies are constantly integrated for the evaluation of saving potentials. However, the proposals from contractors/suppliers in area of IT applications often provide less transparency about costs and delivery time. Additionally, the prices are revised downwards permanently in many areas and industries. Hence, high requirements are placed a consistent procurement controlling, since cost control is not sufficient.

 

Optimization of RFP documents for neutral and objective comparison of proposals

The fast and comprehensible determination of the real equivalent value/target cost of the deliverables has critical effects on the economic procurement decision. Our methodical support of Cost Xpert enables with evaluation the neutral and objective comparison of proposals and provides qualified answers to important daily questions in procurement and logistic departments. Furthermore, our clients achieve complete transparency about all cost drivers, including their impact on effort, time and resources and provide a solid basis for argumentation-supported negotiations for the economic optimization of the value added chain, even in business relations with monopolists. Optimal synergy effects associated with high time savings are accomplished by the standardization/structuring of the RFP documents.

 

Plausibility for transparency about cost cutting and saving potentials

Detailed transparency over all cost driving/relevant activities, including their rating allows the representation of IT services (e.g. effort for testing, quality assurance). Furthermore, the potential errors and maintenance costs are shown from release. This enables the reliable establishing of the TCO (Total Cost of Ownership) defined according to initial and operational costs. Through the simulation of different scenarios and what-if-analyses resolution of conflicts are shown cost saving and potentials along the value added chain are visualized. In addition, the determination of the break-even-point allows cost-efficient make-or-buy decisions.

 

Performance measurement and contractor management

The continuous comparison of all relevant cost factors ensures the selection of the best supplier and offers integrated contractor monitoring. Thereby, the productivity KPIs (e.g. the comparison of technologies, teams, processes) show potentials for economical control of acquisitions. Transparency and standardized KPIs allow an objective evaluation of the delivered performance regarding to costs and benefits including comprehensive recalculation. This is a valuable support to the development of sustainability strategies (e.g. cost optimization, development of vendors, innovation).

 

Competitive advantages enabled

Our systematic application of methods increases the estimation accuracy, while significant shortening of the bid phase/evaluation. Associated with analyses of time-cost/trade-off, this allows our clients fast and purposeful actions in dynamically changing markets and enables an earlier market entry (“time to market”) or entrance into new markets. Complete transparency about real equivalent value offers a solid basis for strategy-driven cost management and development of competitive advantage.

 

Strengthening of the level of trust between vendors and contractors through objective results.