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Acquisition cost refers to the total expense incurred by a company to acquire a new asset or customer. This cost may include various elements such as purchase price, taxes, shipping, installation, and any other charges necessary to make the asset ready for use. In marketing, acquisition cost is often used to indicate the cost associated with acquiring a new customer, encompassing marketing and sales expenses directly tied to attracting and securing new business.
Key Benefits
– Cost Savings: Leveraging AI-driven spend analysis and negotiation capabilities can lead to significant cost savings by optimizing supplier selection, finding ideal contract terms, and reducing manual processes.
– Operational Efficiency: Automating procurement tasks via AI agents reduces cycle times and manual effort, allowing procurement teams to focus on strategic priorities.
– Enhanced Compliance: Automated compliance checks integrated within procurement processes ensure adherence to organizational policies and regulatory requirements, reducing the risk of non-compliance.
– Risk Mitigation: AI-driven tools continuously monitor supplier risks and market conditions, enabling proactive risk management and safeguarding against potential supply chain disruptions.
– Strategic Value Creation: By employing advanced AI tools for insights and decision-making support, procurement can shift from a cost-saving focus to becoming a strategic enabler of innovation and growth.
Related Terms
– Cost Savings: Leveraging AI-driven spend analysis and negotiation capabilities can lead to significant cost savings by optimizing supplier selection, finding ideal contract terms, and reducing manual processes.
– Operational Efficiency: Automating procurement tasks via AI agents reduces cycle times and manual effort, allowing procurement teams to focus on strategic priorities.
– Enhanced Compliance: Automated compliance checks integrated within procurement processes ensure adherence to organizational policies and regulatory requirements, reducing the risk of non-compliance.
– Risk Mitigation: AI-driven tools continuously monitor supplier risks and market conditions, enabling proactive risk management and safeguarding against potential supply chain disruptions.
– Strategic Value Creation: By employing advanced AI tools for insights and decision-making support, procurement can shift from a cost-saving focus to becoming a strategic enabler of innovation and growth.
References
Here are 3 Zycus resources related to Acquisition Cost:
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Master the UK Procurement Act 2023: Ensure Compliance & Drive Procurement Excellence
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