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Client Success Story
Should Cost Model for Coffee
SITUATION:
- A major convenience retailer needed help in preparing for negotiations with a key supplier for roasted coffees
- A critical part of the negotiation strategy was to get a comprehensive understanding of the cost incurred by the supplier to produce the coffee
- Working with the category managers, Anklesaria was tasked with building a should-cost model for coffee production
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HOW WE HELPED:
- Conducted in-depth research to understand the coffee roasting process and the supplier’s cost structure
- Coached category managers on process and techniques to gather and analyze critical supplier data for the cost model
- Created a should-cost model, suggested negotiation strategy and transferred the process knowledge to the category managers
BENEFITS:
- Using the cost model, the category team achieved savings of $1.3 million
- Transferred critical process knowledge to the category team, enabling them to undertake similar activities on their own in the future
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