Cost analysis in procurement: A strategic approach for scaling up production companies

Sammanfattning

This thesis investigates strategies and challenges related to cost analysis in procurement within rapidly expanding manufacturing companies. As these companies scale up, they encounter unique complexities in procurement, including managing increasing production demands and evolving supply chain dynamics. Through a comprehensive study combining a literature review and a detailed case study of a global manufacturing company, this research identifies critical inefficiencies and potential improvements in the procurement process. The study reveals that traditional procurement strategies are often insufficient for handling the dynamic environment of high-growth firms, leading to missed opportunities for cost optimization and efficiency. By integrating advanced cost analysis methods, such as should-cost models and thorough cost breakdown analysis, companies can better understand costswithin complex acquisitions, enabling more informed decision-making and a better position insupplier negotiations. The findings suggest a structured approach to procurement that incorporates strategic cost management, enhancing transparency and cost-effectiveness. This approach not only helps in aligning procurement strategies with broader organizational goals but also supports sustainable growth and competitiveness in a rapidly changing market.