Cost structure analysis in purchasing: a comprehensive overview

Cost structure analysis in purchasing is a key tool for gaining an in-depth understanding of the composition of a company's procurement costs. This analysis can be used to uncover potential savings and optimize the purchasing strategy. Strategic purchasing benefits enormously from the transparency of costs, which increases a company's competitiveness.

The importance of cost structure analysis in purchasing

In many companies, procurement costs are a significant component of total costs. However, these are made up of more than just the pure material or product costs. Indirect costs include, for example, warehousing, transportation, quality control and administration. Without a detailed analysis, it often remains unclear which cost centers contribute how much to the overall cost structure. The cost structure analysis provides clarity here and enables well-founded decisions to be made. Companies can thus not only reduce costs, but also optimize their purchasing strategies and minimize risks.

The cost structure analysis process

The first step in a cost structure analysis is to systematically record all relevant costs. This includes direct costs such as the purchase price as well as indirect costs such as transportation, storage and quality control. These costs are grouped into different categories to obtain a detailed overview.

This is followed by the actual analysis. The individual cost items are examined to determine which factors lead to high costs and where there is potential for savings. A central component of this analysis is the identification of cost drivers. Cost drivers are those factors that account for a disproportionate share of the total costs. This can be an expensive supplier, inefficient transportation routes or excessive warehousing, for example.

The long-term benefits are clear: a more efficient cost structure not only means a reduction in expenditure, but also an improvement in profit margins. This leads to increased competitiveness on the market.

‍