The Metamorphosis of Cost Modeling as a Supply Chain Tool

Cost Modeling has evolved from a negotiation tool to a development tool which captures the impact of process, design and volume on the total cost incurred by the company in manufacturing a product or providing a service. This has also led many industries to depend upon cost models to determine whether the products or services are priced appropriately and the points of negotiations with suppliers like bargaining and cost-drivers are identified. This essentially relates cost-modeling to purchasing skills and procurement which further changes it as a supply chain tool.   Author: Aditi Dev