Services

One traceable cost model for design, engineering and purchasing.

New parts, running parts, sole-source parts, raw material and capex.

Services

  • DFM & design to cost

    What the design costs, and what to change.

    • Manufacturability checks
    • Alternatives
    • DtC CAD proposals

  • Sourcing & negotiation

    Get supplier quotes and test them against should-cost.

    • Supplier RFQ
    • Negotiation levers
    • Questions to ask
    • Live negotiation assistance · roadmap

  • Sustainability

    Carbon per part, with lower-carbon options.

    • CO2e & alternates
    • Price and CO2e alternatives
Procurement playbooks

Procurement playbooks

Supplier negotiation runs on two tracks.

Track 01

NPD parts

New parts under development, costed before the supplier is locked in.

  1. 1Collect 2D drawing, 3D model and specs
  2. 2Should-cost the part in the CostmatiQ app
  3. 3Generate the should-cost report
Outcome

Target price for sourcing the new part

Track 02

Existing parts

Parts already in production, stratified so each kitty is costed and negotiated.

  1. 1Products

    Split spend by product line.

    • Refrigerator
    • Washing Machine
    • Air Conditioner
    • + other lines
  2. 2Commodities

    Group parts into kitties.

    • Motor
    • Drum Assy
    • Enclosure
    • Proprietary parts
    • + more
  3. 3Cost each kitty

    Should-cost in the CostmatiQ app.

    • Should-cost per part
    • Quote-gap per supplier
    • Gap rolled up per kitty
  4. 4Negotiate

    Each kitty, with the cost evidence.

    • One supplier, one kitty, one discussion
    • Levers per part
    • Savings tracked to PO

Proprietary parts (dashed) and raw materials get their own approach — next tabs.

Proprietary parts: two routes to a should-cost.

Route A

Get the data

Obtain the 3D models and 2D drawings from the proprietary supplier.

OR

Route B

Teardown & reverse engineer

Tear down the part, reverse engineer it and build our own 3D model.

In CostmatiQ

Should-cost

Cost the part from the model, whichever route supplied it.

Market benchmark

  • Where competitors buy the part
  • What price they pay

Then

Levers & negotiation

Should-cost plus benchmark give the negotiation levers — even for a sole-source supplier.

A sole-source part still gets a should-cost and a market price to negotiate against.

Raw-material negotiation, driven by index data.

01

RM costing algorithm

RM cost of each part calculated from its material content and the current commodity rate.

  • Material content per part
  • Live commodity rates
02

Commodity & index monitoring

Commodity prices and indexes are tracked continuously, so every movement is visible.

  • Commodity prices
  • Indexes
03

Competitor RM price analysis

Compare the RM prices you pay with what competitors pay for the same materials.

  • Competitor RM prices
  • RM price gap
Levers for RM price reductionIndex-backed evidence for the RM price discussion with every supplier.

RM prices negotiated on data: the algorithm, the index and the market.

Capex negotiation, costed before the PO.

01

Tooling cost

Mould and die cost built up from tool steel, standard parts, machining hours and tryout.

  • Tool cost breakup
  • Cavitation & tool life
02

Jigs & fixtures

Welding, assembly and checking fixtures costed from their design and build hours.

  • Fixture BOM
  • Design & build hours
03

SPM & line

Special purpose machines and lines costed station by station, up to commissioning.

  • Station-wise cost
  • Bought-outs & automation
Levers for Capex negotiationShould-cost for every tool, fixture and machine before the PO is placed.

Capex negotiated on engineering cost: tools, fixtures and lines.

Onboarding CostmatiQ

Week 1

  1. 01Presentation to Top Management

    Owner CostmatiQ

  2. 02Presentation to Sourcing Team

    Owner CostmatiQ

  3. 03Presentation to Engineering Team

    Owner CostmatiQ

Weeks 2 & 3

  1. Week 2

    04Input collection for three parts

    • Plastic, Sheet metal, PCBA
    • 2D Drawing
    • 3D Model - .stp format
    • Supplier quote or Settled Cost Breakup

    Owner Your Design & Purchasing

  2. Week 3

    05POC on three parts

    • CostmatiQ team will come to your premises and perform the cost estimation in CostmatiQ application.

    Owner CostmatiQ

Week 4

  1. 06Output pack

    • Cost report
    • Gap analysis
    • Negotiation levers

    Owner CostmatiQ

  2. 07Cross-functional review

    • Design, Purchasing and Manufacturing agree the target and own the levers.

    Owner You + CostmatiQ

  3. 08Supplier negotiation

    • Evidence-led discussions

    Owner Your Purchasing

09Savings realisation
  1. Identified
  2. negotiated
  3. PO updated
  4. verified on the invoice
Owner Your Finance & Purchasing

Start with three of your parts.

Plastic, sheet metal and PCBA. Cost report, gap analysis and levers in four weeks.

Book for POC sales@costmatiq.com