Implementation Process

Phase 1 – Strategy Development, Launch Ready

Buyer Training

  • Basics of Costing
  • Cost Breakdown
  • Bench Marking Cost Drivers
  • Identifying Savings
  • Strategic Sourcing
  • Open Book

Cost BreakDowns

  • Getting to the right level of detail
  • Example Cost Breakdowns
  • How to get supplier to complete them

Strategic Supplier Process

  • Integrate Costing into Strategic Sourcing Process
  • Early Sourcing
  • Generate Communications Package
  • Use Cooperative Process w Suppliers
  • Identify Suppliers

Develop RFQ
(Current and Future)

  • Put together RFQ Package
  • Representative Family of Parts
  • Drawings
  • Specifications

Engage Suppliers

  • Review Strategic Sourcing Process
  • Review Future State and Timing
  • Follow Up on any open items
  • Get Supplier Feedback to Move Forward


  • Review Supplier Feedback
  • Determine if enough suppliers are moving forward.

Phase 2 – Launch, Cost Model Dev. and Approval

Visit Supplier

  • Capabilities
  • Manufacturing Metrics
  • Production Equipment
  • Review Capacity Utilization
  • Sales
  • Customers
  • Review Costs
  • Time Studies
  • Continuous Improvement

Process Data, Generate Model

  • Generate 1st draft with supplier
  • Make any required changes to the model working with the supplier
  • Work thru 2nd, 3rd iterations
  • Set the model

Identify Potential BIC Suppliers

  • Test the application of the model on initial RFQ
  • Understand commodity impact
  • Determine Ranking
  • Strategic Supplier Identification

Business Alignment w/ Strategic Suppliers

  • Customer to generate strategies to work together with Best In Class supplier
  • Customer & Best in Class Supplier to model many parts.
  • Customer takes advantage of suppliers cost structure thru business alignment with Strategic Suppliers

Continuous Cost Improvement

  • Visibility into the cost drivers
  • Benchmark Cost Divers = Waste Identification
  • Reduce Waste – Understand Financial Impact of Waste Reduction