‘Trust’ is the cornerstone in any relationship, yet conventional wisdom suggests when it comes to commercial matters in business, everyone should keep their costs confidential.
Benchmark Consulting have adapted their on-line cost model to allow suppliers to populate their cost and performance data in the online portal, such that the sales price can be calculated instantaneously. This enables a price to be generated on any specification, quantity or manufacturing process, without the need for continuous approval/negotiation. All prices generated will be at the competitive and sustainable level achieved in the tender process and eliminate any risk of 'margin creep'.
Open-Book-Costing provides a platform for a longer term strategic partnership with your suppliers. This reduces the need for tenders on a frequent basis, which are often very time consuming for global brand owners. This in turn provides the commitment the supplier needs to invest in the latest technology, which will further drive down cost and ultimately the price.
Full open-book-costing also allows collaboration between yourself and your suppliers at a much deeper level. Challenging each individual cost driver, the supply chain and external factors, allows you to develop a road map together of sustainable, mutually beneficial cost savings over the term of the contract.