What is Should Cost Analysis?

Should Cost Analysis is a strategic assessment conducted by a customer to analyze the supplier’s expenses associated with delivering a product or service or fulfilling a contract. This analytical process aims to evaluate and establish an appropriate cost estimate, guiding negotiations and providing a benchmark for comparison with the supplier’s quoted figure. By delving into the intricacies of the supplier’s cost structure, Should Cost Analysis empowers customers to make informed decisions, negotiate effectively, and ensure fair and competitive pricing in procurement activities.

Learn more about Ivalua’s Spend Analysis Solutions.