Variance as a Service (VaaS)
Analyzing costs across the spectrum of your enterprise to uncover savings opportunities
Using VaaS, we conduct a comprehensive variance analysis of the details behind the material, labor, burden, cycle time, SG&A and packaging costs quoted by your suppliers to identify opportunities for savings.
Typically, buyers receive detailed cost breakdowns for each transaction, and then set them aside. We use VaaS to review this mountain of historical data to find the best costs. We look for cost variances and track savings.
Variance Analysis Case Study 1
VaaS was applied to a number of components for a major tier-one automotive seating supplier. The result; $7 million in savings opportunities with over 50% implemented within 200 days. VaaS discovered that the supplier was being paid one price in the U.S. and a different price in Europe for essentially the same part.
Variance Analysis Case Study 2
A manufacturer buying a competitor wanted to understand the material cost savings that could result from the acquisition. The problem: anti-trust laws prevented the manufacturer from completing the analysis. Utilizing VaaS, APD reviewed more than $800 million of spend, identifying $100 million of savings opportunities.