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Client Success Story
Should Cost Model for Cement
SITUATION:
- A large construction company needed help in preparing for negotiations with a key supplier for cement
- A key part of the negotiation strategy was to understand the supplier’s cost structure
- Working with the category manager, Anklesaria was tasked with building a should-cost model for cement manufacturing
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HOW WE HELPED:
- Conducted in-depth research to understand the cement manufacturing process and identify data sources for the cost model
- Built a should-cost model to understand the supplier’s cost structure and suggested a negotiation strategy
- Coached the category manager on process and techniques to gather and analyze critical supplier data for the cost model
- Transferred the process knowledge to the category managers
BENEFITS:
- Identified potential savings of 35%
- Transferred critical process knowledge to the category team, enabling them to undertake similar activities on their own in the future
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