Cost Structure Analysis – How to

𝐇𝐨𝐰 𝐰𝐞𝐥𝐥 𝐝𝐨 𝐲𝐨𝐮 𝐫𝐞𝐚𝐥𝐥𝐲 𝐤𝐧𝐨𝐰 𝐭𝐡𝐞 𝐜𝐨𝐬𝐭 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐩𝐚𝐫𝐭𝐬 𝐲𝐨𝐮’𝐫𝐞 𝐛𝐮𝐲𝐢𝐧𝐠?

For many companies, cost transparency stops at the last supplier quote – but that’s not enough when savings targets are ambitious and supply chains are volatile. Conducting a thorough Cost Structure Analysis is a major step forward.

targetP evolving procurement helps companies systematically recalculate purchased parts to uncover hidden cost drivers and negotiation potential. Our approach starts with a Greenfield calculation: a neutral, bottom-up model that builds a clean-sheet view of what the part should cost based on material, manufacturing process, and logistics assumptions.

But we don’t stop there. We work closely with our clients to take this model into the real world:
✅ Through joint supplier visits to validate processes, assess machinery, and understand production logic
✅ Through a transition to Brownfield costing, where real-world supplier data and constraints are layered into the model to sharpen cost realism
✅ Through detailed cost driver analysis that pinpoints levers for design-to-cost, sourcing alternatives, or value engineering

Most importantly: we support not only the analysis but also the implementation. From preparing strategic negotiation arguments to directly supporting in supplier discussions, we help ensure that identified potentials are turned into measurable results.

𝐁𝐞𝐜𝐚𝐮𝐬𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐞𝐧𝐝, 𝐜𝐨𝐬𝐭 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐢𝐬 𝐨𝐧𝐥𝐲 𝐯𝐚𝐥𝐮𝐚𝐛𝐥𝐞 𝐢𝐟 𝐢𝐭 𝐥𝐞𝐚𝐝𝐬 𝐭𝐨 𝐛𝐞𝐭𝐭𝐞𝐫 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬 – 𝐚𝐧𝐝 𝐛𝐞𝐭𝐭𝐞𝐫 𝐨𝐮𝐭𝐜𝐨𝐦𝐞𝐬.