Exploit the full potential<\/h2><\/div>4cost’s software<\/a> and services<\/a> are universally applicable, regardless of industry and technology. The following practical scenarios give you an insight into the versatility of our solutions.<\/p>\n<\/div><\/div><\/div><\/div><\/div>Creation of should-cost models for the procurement department of an international energy company<\/h2><\/div>Strengthening the negotiating position with suppliers and reducing purchase prices for spare parts due to increased cost transparency<\/h3><\/div>Initial situation & task<\/strong><\/p>\n\n- The client’s procurement department negotiates with suppliers on the basis of existing purchase prices in the ERP system<\/li>\n
- Influencing factors such as requested quantity, country of production, inflation or cost estimate of the product are not available or do not provide a clear recommendation for action<\/li>\n
- Competitors’ procurement departments achieve lower purchase prices for spare parts<\/li>\n
- Cost and price information from independent analyses should be made available in the ERP for the top-selling and most expensive products in the spare parts business<\/li>\n
- The client hopes that this will lead to a reduction in purchase prices<\/li>\n<\/ul>\n<\/div>
Approach<\/strong><\/p>\n\n- Segmentation of the identified products per commodity (process, dimensions, machining volume, shape, etc.)<\/li>\n
- Identification of the most suitable should-costing method according to the dataset and required depth of negotiation based on products specified by the client:\n
\n- Method 1: Should-cost modelling in 4cost-aces<\/a> (parametric)<\/li>\n
- Method 2: Should-cost modelling in 4cost-structure<\/a> (bottom-up) and provision of a detailed report with subsequent transfer to 4cost-aces<\/li>\n<\/ul>\n<\/li>\n
- Testing and validation of the generated models by the client<\/li>\n
- Providing the should-cost models in 4cost-aces<\/a> with simplified input for use on the client side<\/li>\n<\/ul>\n<\/div>
Results<\/strong><\/p>\n\n- The Web Edition<\/a> of 4cost-aces<\/a> provides the client with calculable should-cost models from various commodities, which the procurement department can use to make valid price estimates for specific products depending on the country of manufacture and requested quantity<\/li>\n
- The material databases contained in the software are updated quarterly according to market indices and made available to the client in the model<\/li>\n
- New enquiries are mapped directly with the models and the results are transferred to the ERP system by the client’s part engineers via an interface<\/li>\n
- The procurement department has access to up-to-date price indications at all times, which can help in negotiations with suppliers and contribute to reducing the purchase prices for spare parts<\/li>\n
- Additional benefits: Optimisation of the supply chain<\/li>\n<\/ul>\n<\/div><\/div><\/div>
![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2024\/02\/Dampfturbine.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>Fast cost analysis of an air-cooled dry cooler of a power plant<\/h2><\/div>Identifying cost potentials and argumentation aids for negotiations<\/h3><\/div>Initial situation & task<\/strong><\/p>\n\n- Cost analysis for the building of a large-scale air-cooling system for a power plant<\/li>\n
- Different scenarios about suppliers, logistics and procurement and manufacturing countries should be mapped for a cost comparison<\/li>\n<\/ul>\n<\/div>
Approach<\/strong><\/p>\n\n- The different scenarios were created using the parametric cost model of 4cost-aces<\/a><\/li>\n
- Limited information of the systems (dimension, number of pieces, requirement, complexity) is needed to assess valid manufacturing costs<\/li>\n
- The cost models consider manufacturing countries and supplier scenarios (overheads, profits, risks)<\/li>\n
- The packaging and transport of the units were provided and integrated using a heuristic model<\/li>\n<\/ul>\n<\/div>
Results<\/strong><\/p>\n\n- In a few workshop<\/a> days, a valid cost model could be created with the engineers on the client’s side<\/li>\n
- Different scenarios were investigated and the “most favourable” (country of production, logistics) was established<\/li>\n
- Risk analyses for material price increases could be created in the parametric model of 4cost-aces<\/a> at the push of a button and subsequent demands from some suppliers could be identified as excessive<\/li>\n
- In some scenarios (manufacturers), savings potentials of up to 32% could be made visible<\/li>\n
- The worksite final assembly was automatically calculated by 4cost-aces and puts the supplier offer on a valid basis<\/li>\n<\/ul>\n<\/div><\/div><\/div>
![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2022\/11\/Kraftwerkskuehlung.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>Should costing in the spare parts area of power plant components<\/h2><\/div>Strengthen the purchasing department through well-founded cost analyses<\/h3><\/div>Initial situation & task<\/strong><\/p>\n\n- Should costing in the area of spare parts in power plant components, where the results are providing a permanent and valid base for global negotiation, supporting purchasing departments<\/li>\n
- Challenges: small quantities, high technical product diversity, globally distributed suppliers, up-to-date material prices and inflation rates<\/li>\n
- Creation of an individualised report with interface to the customer’s own ERP system<\/li>\n<\/ul>\n<\/div>
4cost’s software<\/a> and services<\/a> are universally applicable, regardless of industry and technology. The following practical scenarios give you an insight into the versatility of our solutions.<\/p>\n<\/div><\/div><\/div><\/div><\/div> Initial situation & task<\/strong><\/p>\n Approach<\/strong><\/p>\n Results<\/strong><\/p>\n Initial situation & task<\/strong><\/p>\n Approach<\/strong><\/p>\n Results<\/strong><\/p>\n Initial situation & task<\/strong><\/p>\nCreation of should-cost models for the procurement department of an international energy company<\/h2><\/div>
Strengthening the negotiating position with suppliers and reducing purchase prices for spare parts due to increased cost transparency<\/h3><\/div>
\n
\n
\n
\n
<\/span><\/div><\/div><\/div><\/div><\/div>Fast cost analysis of an air-cooled dry cooler of a power plant<\/h2><\/div>
Identifying cost potentials and argumentation aids for negotiations<\/h3><\/div>
\n
\n
\n
<\/span><\/div><\/div><\/div><\/div><\/div>Should costing in the spare parts area of power plant components<\/h2><\/div>
Strengthen the purchasing department through well-founded cost analyses<\/h3><\/div>
\n
![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2022\/11\/Kraftwerk.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2022\/11\/Schienengueterverkehr.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2022\/11\/Raumfahrt.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2022\/11\/Kaffeevollautomat.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>[fusion_builder_next_page]![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2021\/08\/Regionalfahrzeug.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>![](\"https:\/\/www.4cost.de\/wp-content\/uploads\/2021\/08\/Windrad.jpg\")
<\/span><\/div><\/div><\/div><\/div><\/div>