The Road to Should-Be Costs Part 2

Should be costing is a wide range of tools trying to achieve 2 goals:

• Provide reasonably accurate predictions of costs that can be used in new-business pursuits and design optimization.
• Serve as the basis for negotiating pricing with suppliers.

In our previous paper, The Road to Should be Costs, we provided an overview of some different types of should be cost methods each of which can provide estimates. In this paper we discuss what we believe are best practices in approaching negotiations with suppliers.

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