Consulting Services
Should-Cost Modelling
A should cost model is a tool that can be used to estimate the cost of manufacturing a good or delivering a service. The model takes into account the cost of materials, labor, overhead, and other factors that go into producing the good or service. The model can be used to compare the actual cost of production to the estimated cost, and to identify areas where costs can be reduced.
how we can help
We’ll ensure that you focus on the costs
End-to-end programs.
There is no standalone process for should-cost modelling, but we will work together to develop a sustainable process for your organization. I have extensive experience working with procurement teams to develop these models.
Should Cost
A should cost model is a tool used by procurement and financial professionals to estimate the “should cost”, or the cost that a product or service “should” be, given certain market conditions. The should cost model takes into account variables such as material costs, labor costs, overhead costs, and other expense categories that impact the final cost of a product or service.
Procurement
It is important to have a procurement professional involved who is proficient in negotiation and contract writing. This helps get the lowest pricing over time.
Finance
This is where we can sit in this process, by understanding the finances of the organization and collaborating with a procurement professional to develop an appropriate model for your organization.
