Digital should-cost analysis is a methodology that helps organizations determine the most accurate value possible for the goods and services they purchase. It breaks down the many component parts of a cost and uses AI technology to access deep data from multiple sources. This allows organizations to optimize the enterprise value chain and make more informed decisions about sourcing and supplier selection. The key is a coordinated systematic approach, enabled by technology that didn't exist just a few years ago. Digital should-cost analysis is not meant to replace current systems and procedures, but rather to augment them, making it relatively easy to implement. It helps organizations identify key cost drivers, negotiate more effectively, and choose suppliers more strategically.
