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What are should cost models?

Posted by minteclimited on May 7, 2019 11:40:12 AM

"Should cost models" are the future of food procurement. They enable procurement teams to easily generate cost breakdowns including labour and packaging for current, planned or future products.

They provide greater price clarity and enable category buyers to strengthen their negotiating position with suppliers. Cost models provide the ability to access independent market pricing data and align this with specific finished products. Examples of this could include anything from chicken nuggets to lasagna and from crisps to soft drinks  - and just about any other product.  

The end result is a complete finished product price, which has been defined based on the range of raw material and associated cost inputs. This cost can be tracked, analysed and compared to inform competitive purchasing strategies.

The cost models help strengthen a category buyers approach and inform short, medium and longer-term procurement strategies by pinpointing what costs are, where they are occurring and how they are moving over time. They help understand and respond to trends and gaining a better understanding of where the market is heading.

Down load our FREE Cost Model sample.

negotiation pack2

Recipe Table

Build input costs based on the full range of raw materials and other costs inputs. 

Recipe Table

Model Breakdown

Cost breakdowns including labour and packaging for current, planned or future products.

Model Breakdown

Price Change Report

A detailed market report on nearly any raw material or finished good.

Price CHange Report

 

Topics: Mintec Analytics

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