Cost Benchmarking is a good way to compare your costs with the rivals’ ones or with average by industry. This type of benchmarking refers to a wide range of cost metrics – like prices for raw materials, labor cost, utility expenses, outsourcing fees, etc.
ICG Consulting has large experience in making Expense Benchmarking – as standalone projects and as part of company study and consulting job. We provide Expense Benchmarking services with a wide range of options:
- By target:
- OPEX benchmarking
- CAPEX benchmarking (i.e. comparison of the investment costs such as purchase of new assets, land, patents, etc.)
- OPEX structure benchmarking (i.e. comparison of the percentage held with let’s say labor costs in total expenses)
- Inbound price benchmarking (i.e. comparison of prices paid let’s say for particular raw materials)
- By expense element:
- Costs for raw materials (including raw materials price benchmarking)
- Labor costs (that covers comparison for salaries, remunerations, bonuses, etc.)
- Utility costs (including utility price benchmarking)
- Asset depreciation costs
- Repair and maintenance costs
- Outsourcing service costs
- Tax expenses
- By cost level:
- Direct costs
- Indirect costs
- Manufacturing expenses
- Marketing and sale expenses
- Full expenses
- By geography:
- Nationwide single-site expenses (i.e. comparison of costs with let’s say plant A and plant B located in the same country)
- International single-site expenses (i.e. comparison of costs with let’s say plant A and plant B located in different countries)
- Nationwide multi-site expenses (i.e. comparison of costs with let’s say company A – that has 3 plants in a particular country – with company B that has 2 plants in the same country)
- International multi-site expenses (i.e. comparison of costs with let’s say company A – that has 3 plants globally – with company B that has 2 plants in other countries)
- By time factor:
- Past costs
- Current costs
- Planned and projected costs