Three Reasons to Use Should Cost Modeling

In the face of immense cost pressures and ever-increasing competition, packaging has become a key competitive differentiator and a focus area for CPG companies. A question that is often asked by category managers and procurement leaders is: “Is the business being correctly charged by the supplier?”

This often requires further probing into supplier pricing, with new questions arising – Is the pricing in accordance with industry standards? Is the supplier providing optimum quality relative to price? How should I address a sudden price increase from the supplier’s side? Are there other suppliers in the market offering the product or service at a better price?