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How Cost and Collaboration Can Energize your Career

We have 15 years of data that shows that buyers who move from price-focused, competitive purchasing to cost/value-focused, collaborative purchasing can achieve savings of 8-18% (see figure). I wish we […]


3 Reasons Buyers Resist Using Should-Be Cost Models

Last week we blogged about the reasons why buyers should use should-be cost models.  In summary, effective should-be deployment needs to be designed with the following objectives to maximize success: […]


Four Reasons Why Buyers Should Love Should-Be Cost Models.

In a recent round table we conducted with Chief Purchasing Officers, CPO’s were lamenting about the difficulty they encounter in getting buyers to develop and use should-be cost models.  They […]


Moving from Price to Value Metrics

Our blog “If Value Matters, Why Am I Measured on Cost?” always gets a lot of interaction from purchasing managers who believe that performance metrics that focus on PO to […]


Why do we choose to compete when collaboration provides better results?

For the past few years I have participated in career development academies for a couple of industry associations by doing a short negotiation primer. The facilitator for the sessions always […]


7 Steps to More Productive Detailed Cost Breakdowns

Buyers rely on cost breakdown analysis to reduce material costs and ensure competitive pricing on purchased components.  However, the ability to impact costs is directly correlated with the usefulness of […]


What You Need to Know about Linear Pricing Models

Whether you have been using price models for years or are new to cost modeling, this short video will provide you with a great look at the basics of linear […]