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Should Costing

Highest quality at the best price in purchasing


Optimize purchasing processes and achieve cost reductions 

With FACTON's purchasing solution, buyers and cost engineers successfully implement their purchasing strategies and create a secure basis for negotiations with suppliers through the cost analysis of purchased parts ("should-cost analysis" or "should costing").

With the detailed cost analysis of purchased parts, purchasing/procurement are quickly able to determine what a purchased part may cost and how a change in the specification affects the price. A secure basis is provided for negotiations with suppliers and make or buy decisions. Modules such as benchmark data and cost models support the optimal purchasing process.

White paper: Tapping savings potentials in Purchasing

Customers who trust facton

  • brose
  • Harman
  • Mahle
  • mtu
  • Porsche
  • TE connectivity
  • Roto Frank
  • Bühler Motor

FACTON's enterprise solution provides the global costing platform for purchasing. 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.

Valid cost assessment of manufacturing processes and components

Modules such as the FACTON EPC Cost Model Designer support the cost-based analysis of products. Companies can quickly and easily digitize cost models to evaluate product costs and costs of manufacturing processes and share them with the team.

Integrated benchmark data for reliable price analysis

If no data on wages abroad and material prices are available in the company, benchmark data (FACTON EPC Content) provide a valid basis for cost evaluation. As an add-on solution to FACTON's purchasing solution, system-integrated benchmark data provides wage, location, machine and material data as well as overhead rates.

Learn how companies can identify cost optimization potential and increase competitiveness in our white paper on benchmark data.

  • Better analyze influences on costs and identify cost optimization potential
  • Evaluate international competitors in terms of their performance and cost capabilities
  • Provide price information for purchasing and sales and respond in the best possible way to suppliers/customers
  • Ensure make or buy decisions early in the project and development phase
  • Respond quickly to cost, price and market changes and optimize costs with best practice comparisons

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 -
FACTON EPC Functionalities at a Glance


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

Enterprise Product Costing - 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