Should-cost & cost breakdown analysis for sourcing decisions

    Understand cost drivers, margin structures, and negotiation scenarios in weeks—not months.

    What the engagement delivers

    SUMEDIAN analysts combine manufacturing benchmarks, supplier interviews, and financial modelling so your team can defend negotiations with confidence.

    01

    Cost model transparency

    Build bottom-up cost models with material, process, labour, overhead, and logistics assumptions that every stakeholder can audit.

    02

    Scenario and VA/VE options

    Stress test supplier quotes with currency, volume, make/buy, and design-for-manufacture scenarios to surface savings paths.

    03

    Negotiation readiness

    Equip buyers with walk-away targets, fact packs, and supplier-specific opportunity narratives for informed negotiations.

    Engagement outputs

    Granular cost breakdown with benchmarks and rationale
    Sensitivity analysis covering volume, geography, and material volatility
    VA/VE recommendations with estimated impact and feasibility
    Negotiation briefs, executive summary, and supplier follow-up plan

    Where teams lean on should-cost analysis

    Deploy SUMEDIAN when you need defensible cost evidence across sourcing waves, localisation, or product launches.

    Validating supplier quotes before awarding new tooling or localisation projects.
    Preparing annual cost-down programmes with quantified negotiation levers.
    Building cases for dual sourcing or nearshoring by comparing landed cost scenarios.
    Supporting engineering change requests with evidence-backed cost deltas.

    Should-cost FAQs

    Ready to model your next programme?

    Insights to support your cost programmes