| • Gain a competitive edge with our comprehensive cost models, clean sheet costing techniques that accurately detail each cost element
• Respond to risk scenarios quickly and effectively, as the impact of price volatility on key raw material or sub-services can be predicted using historical and real-time data |
| • Improve visibility through product cost break up to identify the best-fit supplier and implement a vendor management program for long-term supplier relationships
• Strengthen supplier negotiations with cost insights that provide true cost of goods and market conditions in advance |
| • Increase cost savings using spend analysis derived from detailed cost break up, landed cost variations on bill of materials
• Improve price hedging as future price trends of components/services are known |
| • Optimize budget planning as should cost model helps understand the current and future market trends
• Find alternatives to products/services that have high profit margins or are not cost effective |
With close to 20 years of experience, our team of should cost model experts has led to buyer-supplier cost-modeling collaborations, which, in turn, have paved the way to higher mutual profitability.
Insights derived from our should cost model offer an objective and fact-based view of manufacturing costs and service costs. This not only improves negotiation power but also helps companies to engage with suppliers based on their value offering rather than the lowest bidder
We supplement our should cost model analysis with extensive interviews with industry experts, design engineers, product development teams to offer insights that help clients to successfully identify the right time to stock raw materials and improve cross functional collaboration. Such insights have helped our clients to avoid cost overrun as well as ensure optimal stock
Our best-in-industry cost estimation tool offers clients a detailed cost break analysis and determines the underlying cost drivers. Such details help identify overpriced products and their alternatives, thereby improving profits.
Challenge: The client faced volatile raw material prices, supply chain disruptions, and difficulties in managing a complex supplier base while ensuring consistent quality across diverse suppliers.
Solution: We implemented strategic sourcing solutions that included standardizing procurement processes, developing category-specific sourcing strategies, and conducting a thorough supply market analysis to optimize their procurement practices.
Result: This strategic approach led to the classification and analysis of over $100 million in spend data, resulting in significant cost savings and improved procurement efficiency for the client.
Read more Know about SpendEdge ProcurementPrice transparency in sourcing and procurement empowers buyers to make informed decisions based on accurate and comparable pricing information. It enables stakeholders to assess the true value of goods and services, identify cost-saving opportunities, and negotiate effectively with suppliers. Price transparency promotes efficient allocation of resources within the organization, ultimately contributing to the buyer's overarching procurement goals.
Talk to Our Experts
Gain insights related to your key spend categories, ranging from important updates, outlook, and engagement models, to in-depth supply-chain risk analysis.
Improve supplier selection decision making and supplier relationship management through our services covering supplier identification, supplier updates and alerts, and risk and sustainability analysis.
Improve strategic decision making through our services related to negotiation advisory, best practices, risk mitigations, supplier KPIs and SLAs, and cost optimization mechanisms.
Keep a close look at price movements and forecasts for key commodities and the impact of different cost drivers to formulate effective cost reduction strategies.