Collaborative Supply Chains
Types of Cost Models
Our cost models adapt to the relationship with your suppliers.
- Strategic Relationships use our collaborative open book cost models.
- Less strategic relationships apply our enterprise cost models.
Enterprise Cost Models
- Based on hypothetical manufacturing factories.
- Based on Actual equipment and manufacturing processes.
- Regional Specific.
- Minimum waste assumed.
- Above average capacity and asset utilization.
- SGA and Profit 15%-20%.
Collaborative Enterprise Cost Models
- Starts with Enterprise Cost Model.
- Shared with Suppliers.
- Asks for suppliers feedback.
- Updates are made together with the supplier.
- Achieves supplier’s approval and Implementation.
Open Book Cost Model
- Starts with Enterprise Cost Model.
- Based on Actual equipment and manufacturing processes.
- Requirement of a Strategic Supplier Process.
- Supplier is requested to have a cost model in place.
- Supplier Visit is schedule to perform a Data Gathering Workshop.
- Cost Model is Developed that is specific to the supplier.
Collaborative Supply Chains
Regression vs Cost Model
Collaborative Cost Models Outperforms Regression Analysis
Collaborative cost models are a powerful tool for understanding the cost of manufacturing parts and assemblies. They outperform traditional regression analysis methods by providing a more comprehensive and accurate picture of the costs involved.This approach allows for a more detailed understanding of the costs involved and can lead to significant cost savings for manufacturers.
- This process is the fastest path the most savings!
- This process is the fastest path to agreement with suppliers!
- Customers give us very high satisfaction scores!
- We receive awards for our “Collaborative Open Book Cost Models”
