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| What is Cost Drivers? |
| Cost Drivers was originally conceived
with intention of monitoring trends in direct costs for packaging,
commodities and other materials used in the manufacture of
consumer-packaged goods (CPG). Now, it has become an essential
decision-making tool for the purchasing departments of major
companies operating in Brazil |
| Who should use it? |
Cost Drivers is designed for manufacturers
of consumer-packaged goods (CPG) and packaging, retailers
and
other companies interested in following price trends of the
principal components of cost of their products. |
| Examples of applications: |
•Cost control
•Benchmarking and negotiating
•Budgeting and planning
•Brings more objectivity to B2B relationships
•Identification of potential for materials substitution
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| Cost Drivers is a Business Intelligence
- BI service that monitors the monthly variation in costs
or prices paid for the cost components of industrialized products
using cost or price breakdowns weighted in relation to the
importance, which each cost component represents of the total
direct cost. |
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| Cost Drivers also projects future
cost or price trends for each product analyzed and facilitates
their evaluation, using historical time series of monthly
price indexes, economic indicators and projected future prices
from reliable sources. The system applies to packaging, paper,
metals, plastics, glass, promotional materials, chemicals,
petrochemicals, consumer durables, auto parts and MRO. |
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| Cost Drivers brings confidentiality,
objectivity and time saving to on-line B2B negotiations over
the Internet and can be used as a tool for cost avoidance,
budgeting, planning or benchmarking in the purchasing, logistics,
supply chain or procurement departments of manufacturers of
consumer products, food and beverages, cosmetics, personal
products and household cleaning products as well as suppliers
of raw materials and industrial products and retailers. |
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