SpendEdge’s cost modeling and should-cost-analysis enables informed and optimal supplier, pricing, risks and budget related decision-making.
Cost Modeling
Cost modeling empowers an organization to make strategic decisions based on accurate insights. An advanced cost modeling tool promises precision and high-quality decisions as it takes into consideration all the key cost components such as material costs, labor costs, facility and maintenance costs, production costs, and profit margin to manufacture a product or service. It accounts for differences in process, utilization, capacity, geographical location, and all the other factors related to manufacturing or production. Cost modeling enables decision makers to make strategic choices driven by data and insights.
Should-cost-analysis
Should-cost-analysis is leveraged as a cost estimation strategy to obtain visibility into the true cost of materials and services required to produce a product or deliver a service. The benefits of should-cost-analysis are numerous, but so are the challenges to creating a reliable and accurate analysis to be leveraged as a tool to accurately estimate the real price of the product or service you are buying. Our clients have found that cost modelling has made them better equipped in price negotiations with suppliers. For certain clients, should-costs analysis (also known as cleansheet costing, price breakdown analysis, or open book costing) has led to buyer-supplier cost-modelling collaborations where cost structures have evolved and transformed to pave the way to higher mutual profitability. For other clients this has been a necessary analysis to lay the foundation for budget forecasting and planning, as well as managing the risks of price volatility.
At SpendEdge we have specialized in cost-modeling services for the past 16 years and have delivered value to our clients across industries. Our team of should-cost-analysis experts combines industry knowledge and sector expertise, along with geo-specific knowledge on regulations, taxes, tariffs, and rebates. All this complex and in-depth knowledge is applied to each client requirement depending on the needs and available information we acquire as a result of our assessment.
SpendEdge Reports provide every piece of information we look for. Cost Saving Opportunities, Procurement Best Practices, Details on Key Suppliers etc. Very useful for our decision making.
Thank you, your team and everybody for what I think is a very comprehensive report which has come together here and quite a wealth of information.
The SpendEdge reports are very well structured and help us gain quick insights into leading suppliers, pricing models and negotiation strategies. Our team always wanted quick access to such insights, and now is made possible with subscription to the SpendEdge platform.
Should Cost Modelling: Building Relationships and Driving Profitability
Procurement Market Analysis and Identification of Cost Categories of Molten Salt Tanks Through Cost Modeling
The Present and Future of Should Cost Analysis
Building Cost-Effective Temporary Staffing Services by Leveraging Cost Modeling Techniques
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Transitioning your category procurement strategy beyond cost-saving and into a strategic function of the organization.
Over recent years, there have been various industry developments that served as or caused trends in procurement. These procurement trends include technology changes, novel strategic approaches, new processes, and necessary adaptations to change. As supply chains become increasingly complex, procurement has become highly crucial and influential in the production process and continues to grow.
Leveraging insights gained from procurement KPIs can help companies substantially reduce costs, improve quality, significantly enhance speed-to-market, ensure better supplier relationships, and overcome internal organizational shortcomings. However, various procurement KPIs are assigned to evaluate multiple factors, processes, and systems. Still, companies and supply chain managers must learn to identify and focus on the KPIs most imperative to their business, apart from seven necessary procurement KPIs.
Download our latest whitepaper now to understand more on supply chain trends and best practices to be resilient.
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