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    For the best quality at the lowest price in procurement and purchasing

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    Understanding cost structures and recognizing optimization potential

    FACTON EPC Should Costing enables Purchasing and Procurement Managers, Buying/Purchasing Agents and Cost Engineers to successfully implement their purchasing strategies: The should-cost analysis (purchased parts price analysis) in the should costing process creates a secure basis for negotiations with suppliers. In addition, FACTON EPC Content supports the purchasing process with integrated external benchmark data.

    Using the detailed should-cost analysis in FACTON EPC Should Costing, purchasing and cost engineering departments can quickly and easily determine what a purchased part may cost and how a change in specification affects the price. This creates a secure basis for negotiations with suppliers and for make or buy decisions.

    In the EPC system, purchased and standard parts as well as raw materials are stored in the administration, prices of different origin (supplier, system, location) and with different validity are maintained and a where-used list of all purchased and standard parts as well as raw materials is maintained.

    White Paper: Should Costing

    The FACTON EPC Cost Model Designer supports the cost-based analysis of products: Companies can use the solution to quickly and easily digitize cost models of their own products and share them with the team.

     

    Integrated benchmarks for global comparisons

    With FACTON EPC Content, purchasing departments and procurement management have access to validated and external benchmark figures, including charges and data of locations, machines, and materials, standard components, and overheads. This information can be used for a number of purposes:

    • Fast and accurate identification of all parameters that might affect costs with a view to optimizing costs
    • Evaluation of national and international competitors as regards their performance
    • Full access to relevant, up-to-date information for purchasing and sales teams in order to respond quickly to customer requests and to evaluate suppliers
    • Sound basis for make or buy decisions during the project development phase
    • Prompt response to developments in the market, price and cost changes
    • Reducing costs by means of best practice comparisons

    By combining the FACTON calculation tool with FACTON benchmark data, companies and their purchasing departments are in a position to implement a proactive cost management system.

    White Paper: Benchmarking

    Should Costing with FACTON EPC

    • Purchasing volume analysis
    • Should-cost analysis (purchased parts price analysis)
    • Make or buy analysis
    • simulation of commodity prices

    Calculating, Simulating, Analyzing and Optimizing - The FACTON EPC Functionalities

    BEST PRACTICES

    White Paper: Should Costing

    Understand costing structures and identify optimization potential.

    White Paper: Should Costing

    Webinar on Demand: Cost Models for Should Costing

    Learn in the webinar video how Purchasing benefits from the FACTON EPC Cost Model Designer.

    Webinar on Demand: Cost Models for Should Costing

    White Paper: Cost Engineering in Purchasing

    The method you need to secure profitability.

    White Paper: Cost Engineering in Purchasing

    Webinar on Demand: Highest Quality at the Best Price

    The webinar shows how cost engineers negotiate prices with suppliers on an equal footing.

    Webinar on Demand: Highest Quality at the Best Price

    White Paper: Benchmarking

    Identify optimization potential, sharpen competitive edge.

    White Paper: Benchmarking