Predictive Cost Model
Predictive Cost Model (PCM) develops robust “should cost’’ models that provide predictive, actionable analytics to identify cost reduction opportunities of 20–50%. It uses advanced Excel tools for category sourcing project delivery, where the model is customized based on factors such as volumes or manufacturing processes. PCM also provides insights that cross-functional teams can use to address each cost driver and identify trade-offs to create sustainable cost advantage.
- Proven rigorous approach to accelerate the development of robust cost models by leveraging supply market insights and client inputs
- Greenfield approach to discover all value drivers
- Insights into production costs incurred by suppliers across their value chain, for better negotiations
- Provide information on the relationship between product specifications, volumes and conversion costs, and drive effective design changes
- Develop mutually beneficial agreements that include optimal cost structures to form a partnership model