The True Cost Advantage
From Price Taker to Market Maker.
What we hear
On the receiving end of supplier pricing narratives with no independent basis to challenge, validate or reframe what suppliers are telling you?
A different way to see it
Every negotiation starts from someone's number. It should start from yours. Should-cost intelligence changes the geometry of every conversation.
How it works
We build a defensible view of what your key categories should cost, from cost drivers and market data through to a target position you can defend.
The outcome
You stop reacting to supplier price increases and start setting the frame. Negotiations move from trading to designing.
How it connects
Feeds Marketplace, Options and Negotiation with a rigorous cost baseline. Without True Cost, strategy is guesswork.
Questions about True Cost
What is True Cost in the Collaborative Procurement Operating Model?+
True Cost is Domain 03 of the Intelligence phase (Diagnostics). Every negotiation starts from someone's number. It should start from yours. Should-cost intelligence changes the geometry of every conversation.
How does Practical Procurement approach True Cost?+
We build a defensible view of what your key categories should cost, from cost drivers and market data through to a target position you can defend.
What outcome should procurement leaders expect from the True Cost advantage?+
You stop reacting to supplier price increases and start setting the frame. Negotiations move from trading to designing.
How does True Cost connect to the rest of the operating model?+
Feeds Marketplace, Options and Negotiation with a rigorous cost baseline. Without True Cost, strategy is guesswork.