Thani Ltd is a fast growing logistics company with a fleet of 20 tractors. To meet Net Zero objec-tive, the company needs to electrify its fleet…

Despite of its importance, cost analysis is often a daunting task for procurement professionals. In

order to analyse supplier's costs effectively, procurement may need the input from other depart-

ments. Normally, technical (or engineering) department may help them to identify the direct costs of

the product/service (how much material is required to make the product, or how many people are

needed to perform the job, etc), while finance (or accounting) department may have ideas on the

overheads of the supplier.

In this scenario, engineering department may provide insights on the components needed and the

tasks to perform. Similarly, finance may know how much supplier pays for the overheads.

On the other hand, while commercial agency and suppliers are external stakeholders, Sales and

marketing is unlikely to provide valuable information in this case.

Reference: CIPS study guide page 102

LO 2, AC 2.3