Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How Should-Cost Modeling Cut Procurement Spend 15 Percent
In episode 139 of The Buyer's Side, Lucas and Luna explore should-cost modeling—a procurement technique where buyers estimate a product's true production cost to negotiate better prices. They break down a real-world case: a purchasing manager at a Midwest electronics manufacturer used should-cost modeling to cut the cost of a circuit board assembly from $47.50 to $40.38 per unit, a 15% reduction. The conversation covers how she pulled component pricing from distributors, calculated labor based on solder joints, and invited the supplier into a transparent cost-modeling session. Tune…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.