Tag: should-cost analysis

Category Strategy

Sourcing Strategy Development: Complete Procurement Guide

A procurement team can analyze spend, study supplier markets and evaluate costs, but these activities create limited value unless they lead to a clear sourcing strategy. Sourcing strategy development is the process of converting procurement intelligence into a structured plan for how, where, and from whom an organization should source goods or services. A strong

cost drivers

Should-Cost Analysis in Procurement: Complete Guide

A supplier’s quoted price tells procurement what the supplier wants to charge. It does not necessarily explain what the product or service should reasonably cost. This is where should-cost analysis becomes valuable. Should-cost analysis is a structured procurement method used to estimate the reasonable cost of a product, component, service or process by examining its