Tag: Supplier Negotiation

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

Category Management

Strategic Sourcing Process: Step-by-Step Guide for Procurement Professionals

Strategic sourcing is most effective when procurement follows a structured process rather than simply sending quotations to suppliers and selecting the lowest price. The strategic sourcing process provides a systematic framework for understanding business requirements, analyzing spend, studying the supplier market, developing a sourcing strategy, identifying potential suppliers, conducting RFx events, evaluating offers, negotiating commercial