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Professional Services
Cost Modeling
 Anklesaria develops commodity-specific cost modeling tools designed to serve as decision-making aids in the ongoing negotiation process.
Cost models serve to:
- Educate the user in the cost structure of a product/service being procured
- Engage a supplier that has not provided any cost information
- Ensure that cost discussions are based on facts and logic
- Establish credibility and respect during negotiations
Models to evaluate purchase prices
- Should Cost Model (Product or Service)
- Calculate a fair price for a product or service
- Compare suppliers' quotes to industry averages and to one another
- Extract cost information from suppliers
- Identify key cost elements for detailed analysis
- Estimate the target cost of a final product or service
- Percentage of Sales of Model
- Understand the breakdown of a supplier's price, even when the price appears fair and reasonable.
- Engage an uncooperative supplier on a discussion of cost
- Build a Price Discipline model to evaluate price-change requests over a period of time
- Price Discipline Model
- Determine the reasonableness of a supplier's request for a change in price
- Sets the structure for all future discussions on price
- Useful in setting up long-term agreements
Models to evaluate sourcing decisions
- Total Cost of Ownership (TCO) Model
- Make the "right" sourcing decision
- Understand and measure all costs incurred over the life of the product or service
- Determine the overall financial impact of business strategies
- Base model in a Make vs. Buy analysis
- Make vs. Buy Model
- Make the "right" sourcing decision
- Critical in outsourcing choices
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