Should Cost Model
Should cost model helps analyze each cost component to improve budget forecasting and planning, as well as manage the risks of price volatility.
Contact usHow your business benefits
Maximize profits through reliable and accurate cost analysis
- Gain an edge with our comprehensive cost models that accurately detail each cost element
- Respond to risk scenarios quickly and effectively, as the impact of price volatility can be predicted in time
Identify the most optimal suppliers
- Strengthen negotiations with suppliers as the true cost of a product or service is known in advance
- Complete visibility of product cost break up will help identify the best-fit supplier for long-term engagements
Achieve significant cost savings
- Avoid price hedging as future price trends of components/services are known
- Increase cost savings using spend analysis derived from detailed cost break up
Find alternatives to cut costs
- 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
Why choose SpendEdge?
Improve your profitability
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.
Helps prioritize quality
Insights derived from our should cost model offer an objective and fact-based view of product/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
Know the right time to stock supplies
We supplement our should cost model analysis with extensive interviews with industry experts to offer insights that help clients to successfully identify the right time to stock raw materials. Such insights have helped our clients to avoid cost overrun as well as ensure optimal stock.
Identify overpriced products
Our best-in-industry cost estimation tool offers clients a detailed cost break and determines the underlying cost drivers. Such details help identify overpriced products and their alternatives, thereby improving profits.
Featured Case Study
How SpendEdge Helped CPG Giant Streamline Contract Manufacturer Selection Process
Challenge: Faced with intense competition and the need to improve profit margins, our client turned to SpendEdge for assistance in overcoming their business challenges. One of the main strategies involved migrating cost-intensive operations to low-cost destinations.
Solution: Our team at SpendEdge assisted the client in streamlining their contract manufacturer selection process. Leveraging our expertise and market research methodology, we identified key contract manufacturers for the client’s ready-to-eat product line.
Result: The client successfully addressed their business challenges and achieved improved profit margins and reduced operating costs. All the while, also enhancing product quality and expanding manufacturing capabilities.
Talk to One of Our Experts
Price fluctuation is one of the biggest concerns companies face today and an “early warning” can help companies to smoothly sail out of such financial risks.
Talk to Our ExpertsInsights
Category Intelligence
Gain insights related to your key spend categories, ranging from important updates, outlook, and engagement models, to in-depth supply-chain risk analysis.
Supplier Intelligence
Improve supplier selection decision making and supplier relationship management through our services covering supplier identification, supplier updates and alerts, and risk and sustainability analysis.
Strategy Support
Improve strategic decision making through our services related to negotiation advisory, best practices, risk mitigations, supplier KPIs and SLAs, and cost optimization mechanisms.
Category Cost and Pricing
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.