Better Business Decisions Using Cost Modeling

This book offers a practical guide to creating and utilizing internal and external cost models, aiding in product development, pricing strategies, and enhancing collaboration among supply chain partners for improved decision-making.

Better Business Decisions Using Cost Modeling serves as a practical guide for professionals looking to enhance their decision-making capabilities through the effective application of cost models. The book covers the development and implementation of internal cost models, illustrating their utility in various business scenarios such as product development, pricing strategies, make-or-buy analyses, and identifying opportunities for process improvements. By providing clear examples, the author helps readers understand how these models can be integrated into everyday business practices to drive better outcomes.

In addition to internal cost models, the book delves into the creation and utilization of external cost models. These models are essential for fostering collaborative improvement efforts with supply chain partners. The text emphasizes how external cost models can facilitate more informed price negotiations, keeping discussions centered on factual data rather than emotional responses. This approach not only aids in achieving fair pricing but also allows for strategic conversations with preferred suppliers, focusing on long-term operational enhancements rather than immediate costs.

Throughout the book, readers will find numerous detailed examples that illustrate the construction of cost models and their successful application in real-world scenarios. By combining theoretical insights with practical guidance, Better Business Decisions Using Cost Modeling equips business professionals with the tools they need to make informed decisions that enhance efficiency and drive growth within their organizations.