{"id":15370,"date":"2026-05-12T14:41:21","date_gmt":"2026-05-12T14:41:21","guid":{"rendered":"https:\/\/www.expanamarkets.com\/?post_type=insight&#038;p=15370"},"modified":"2026-05-13T08:06:20","modified_gmt":"2026-05-13T08:06:20","slug":"cost-modeling-5-value-levers-every-procurement-leader-should-be-using","status":"publish","type":"insight","link":"https:\/\/www.expanamarkets.com\/insights\/article\/cost-modeling-5-value-levers-every-procurement-leader-should-be-using\/","title":{"rendered":"Cost Modeling: 5 Value Levers Every Procurement Leader Should Be Using\u00a0"},"content":{"rendered":"\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div id=\"1\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-16 md:pt-20 xl:pt-24 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<p><em><span class=\"TextRun SCXW262916840 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW262916840 BCX0\">Senior procurement leaders from a leading nutrition brand and a global confectionery giant recently gathered to explore how cost\u00a0<\/span><span class=\"NormalTextRun SCXW262916840 BCX0\">modeling<\/span><span class=\"NormalTextRun SCXW262916840 BCX0\"> is changing what procurement can deliver. These are the five levers that came out of that conversation.<\/span><\/span><\/em><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n<div id=\"Takeaways\">\n<!-- .module.introduction: start -->\n<div  class=\"module introduction theme-lightGreen pt-10 md:pt-10 xl:pt-10 pb-10 md:pb-10 xl:pb-10 hidden show-small:block show-medium:block show-large:block relative z-10\">\n\n\t<div class=\"container md:grid grid-cols-12\">\n\n\t\t<div class=\"content col-span-12 md:col-span-8 \">\n\t\t\t<h3 class=\"h3\" data-scroll-class=\"expanaFadeInUp\">Key Takeaways<\/h3>\n\t\t\t\t\t\t\t<div class=\"description mt prose\" data-scroll-class=\"expanaFadeInUp\" data-scroll-delay=\"500\">\n\t\t\t\t\t<ul>\n<li class=\"whitespace-normal break-words pl-2\">Most procurement teams have commodity price data. Far fewer can translate it into what it means for the cost of a finished product \u2014 or show finance which input is driving a SKU cost change before the invoice arrives. Cost modeling closes that gap.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">A benchmark cost model means procurement arrives at supplier negotiations with an independent view of what inputs have actually done in the market, not what the supplier says they have done.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">Negotiating pricing formulas and indexation clauses is more valuable than negotiating a single price. A category manager with a credible cost model can negotiate the mechanism that governs how prices move over time \u2014 reducing exposure to future increases before they happen.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">Cost modeling built into NPD means ingredient projections are live, not static. A reformulation decision made in month two reflects where inputs are heading over the next 18 months, not where they were last quarter.<\/li>\n<li class=\"whitespace-normal break-words pl-2\">A category team that can show leadership which SKUs are under cost pressure before the numbers move is not reporting. It is contributing to financial planning. That changes how the function is perceived, what gets resourced, and who gets invited into decisions.<\/li>\n<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\n\t<\/div>\n<\/div>\n<!-- .module.introduction: end --><\/div>\n\n<div id=\"1\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-16 md:pt-20 xl:pt-24 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<p><span data-contrast=\"auto\">Most procurement teams have commodity price data. Fewer have a clear view of what that data means for the cost of a finished product. Fewer still can show finance exactly which input is driving a SKU cost increase,\u00a0or where a market movement is creating an opportunity to reduce costs,\u00a0before the invoice arrives.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\"><span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.expanamarkets.com\/product\/features\/cost-model\/\">Cost modeling<\/a><\/span> closes that gap. Not as a finance exercise. As a procurement capability. And with AI now able to build a cost model from a single product description in minutes, the barrier to getting started has never been lower.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n\n<div style=\"display: flex; justify-content: center; width: 100%;\">\n  <img decoding=\"async\" src=\"https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2025\/10\/EXP-IQ-animation-v2.gif\" alt=\"Expana IQ AI-powered cost model builder animation\" style=\"max-width: 700px; width: 100%; height: auto;\" \/>\n<\/div>\n\n\n<div id=\"2\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-0 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<p><span class=\"TextRun SCXW86991161 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW86991161 BCX0\">Expana IQ<\/span><span class=\"NormalTextRun SCXW86991161 BCX0\">:\u00a0<\/span><span class=\"NormalTextRun SCXW86991161 BCX0\">AI-powered cost model builder. Describe your product, Expana maps the inputs across materials, packaging, indirect costs, and more.<\/span><\/span><span class=\"EOP SCXW86991161 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<h5>1: Cost breakdown: make the invisible visible<\/h5>\n<p><span data-contrast=\"auto\">The foundation of cost modeling is simple. Break a finished product into its component costs,\u00a0raw materials, labour, overhead, transportation, packaging,\u00a0and track each one independently.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">That separation changes everything. When you can see which element is moving and why, the conversation with finance changes.\u00a0The conversation\u00a0with suppliers changes. The question shifts from\u00a0\u2018\u2019what\u00a0did this cost?\u2019\u2019\u00a0to\u00a0\u2018\u2019what\u00a0is this going to cost,\u00a0and what can we do about it now?\u2019\u2019<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\"> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-15371\" src=\"https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-1024x769.png\" alt=\"Cost Model - Raw Materials and Packaging Cost\" width=\"1024\" height=\"769\" srcset=\"https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-1024x769.png 1024w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-800x601.png 800w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-768x577.png 768w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-27x20.png 27w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-58x44.png 58w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-40x30.png 40w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-400x300.png 400w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost-120x90.png 120w, https:\/\/www.expanamarkets.com\/wp-content\/uploads\/2026\/04\/Cost-Model-Raw-Materials-and-Packaging-Cost.png 1204w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/span><span data-contrast=\"auto\">Expana Platform: Complete ingredient cost breakdown for a finished product SKU. Every component separated, quantified, and tracked independently.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n<div id=\"3\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-0 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<h5>2: B<span class=\"TextRun MacChromeBold SCXW95678439 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW95678439 BCX0\">enchmark models: know where you stand before the supplier does<\/span><\/span><\/h5>\n<p><span data-contrast=\"auto\">A benchmark model compares your cost structure against independent market standards. Not what your supplier says the market looks like. What the market actually looks like.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">When a supplier presents a cost increase, you arrive with an independent view. The increase is\u00a0validated\u00a0or challenged\u00a0on the basis of\u00a0what the underlying inputs have\u00a0actually done. That can strengthen the basis of the negotiation.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">When\u00a0Expana\u00a0data shows cane sugar down more than 13% year-on-year, and a supplier claims input costs are rising,\u00a0a benchmark model can help inform that conversation with independent market context.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">\u2018\u2019We have found it to be an invaluable part of our purchasing strategy, budgeting and supplier negotiations.&#8221; Expana customer, baked goods manufacturer\u2019.\u00a0<\/span><\/i><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n<div id=\"4\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-0 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<h5>3: <span class=\"TextRun MacChromeBold SCXW34634587 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW34634587 BCX0\">Supplier commercial mechanisms: negotiate the structure, not just the price<\/span><\/span><\/h5>\n<p><span data-contrast=\"auto\">Pricing formulas, indexation clauses, cost-sharing structures,\u00a0these are only as robust as the data underpinning them.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A category manager with a credible cost model does not just negotiate the price. They negotiate the mechanism that governs how prices move over time. That is a fundamentally different commercial conversation,\u00a0and one that\u00a0could\u00a0reduce\u00a0exposure to future cost increases before they happen.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">When the cost model is connected to live market data and updated automatically through API integration, those mechanisms stay current without manual intervention. The data flows into the tools your teams already use.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n<div id=\"4\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-0 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<h5>4: <span class=\"TextRun MacChromeBold SCXW193573573 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW193573573 BCX0\">NPD acceleration: price new products before the market prices them for you<\/span><\/span><\/h5>\n<p><span data-contrast=\"auto\">New product development has always had a cost problem. Estimates made at conception are rarely accurate by the time a product reaches market. Ingredient prices move. Formulations change. The cost assumption baked into the business case becomes a liability.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Cost modeling built into the NPD process means ingredient cost projections are live, not static. A reformulation decision made in month two reflects where each input is heading over the next 18 months,\u00a0not where it was last quarter.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Speed to market matters. So does knowing what you are committing to when you get there.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n<div id=\"4\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-0 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<h5>5:\u00a0<span class=\"TextRun MacChromeBold SCXW151163753 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW151163753 BCX0\">Finance alignment: change the conversation at leadership level<\/span><\/span><\/h5>\n<p><span data-contrast=\"auto\">This is where the CPO sees the value.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A category team that can show leadership which SKUs are exposed to cost pressure,\u00a0before the numbers move,\u00a0is not reporting. It is contributing to financial planning. When procurement and finance are working from the same\u00a0informed\u00a0cost picture, procurement stops being the function that delivers difficult news and becomes the one that saw it coming.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">That changes how the function is perceived. It changes what gets resourced. And it changes who gets invited into the room where decisions are made.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n<div id=\"4\">\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-0 pb-0 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<h5>The 18-month view\u00a0<\/h5>\n<p><span data-contrast=\"auto\">Each of these five levers is more powerful when\u00a0combined with\u00a0additional\u00a0data and insights.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Cost models can predict\u00a0up to 18 months ahead, with commodity forecasts built into each\u00a0component\u00a0\u2014 meaning the category manager is not only managing today&#8217;s\u00a0costs, but\u00a0is better informed about what\u00a0tomorrow&#8217;s\u00a0could look like. A raw material under upward pressure in the forecast\u00a0can inform a sourcing conversation today, rather than surfacing as\u00a0a budget variance in six months.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Detailed breakdowns show the exact factors driving changes across raw materials, packaging, freight, energy, and labour,\u00a0so the category manager can identify which component to act on and when.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><em><span class=\"NormalTextRun SCXW50903272 BCX0\">&#8220;W<\/span><span class=\"NormalTextRun SCXW50903272 BCX0\">hen prices can be integrated easily into your systems, your business processes and models can be updated quickly and easily<\/span><span class=\"NormalTextRun SCXW50903272 BCX0\">.&#8221; Vinay Kapoor, Chief Product Officer, Expana.<\/span><\/em><\/p>\n<p><span class=\"TextRun SCXW56722300 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW56722300 BCX0\">A cost model covering one SKU is useful. A cost model covering the full portfolio is a strategic intelligence layer.<\/span><\/span><span class=\"EOP SCXW56722300 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The category manager who can\u00a0show\u00a0Finance where a finished product&#8217;s cost could be heading in six months is not just doing procurement. They are contributing to financial planning.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Expana&#8217;s cost modeling tool allows procurement teams to build complete cost breakdowns for finished product SKUs, track the influence of raw material price movements on specific products, and project cost models up to 18 months ahead.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With\u00a0<span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.expanamarkets.com\/why-expana\/expana-iq\/\">Expana\u00a0IQ<\/a><\/span>, cost models can be built in minutes from\u00a0a single product\u00a0description,\u00a0giving category managers and CPOs the\u00a0market context to inform decisions ahead of potential cost movements.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">See it in action with a <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.expanamarkets.com\/request-a-demo\/\">live demo.<\/a><\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">This content is prepared by Expana and its group of companies, neither of which is an investment firm. We have no positions in the commodities or derivatives referenced. The views expressed are for information only. See our <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.expanamarkets.com\/disclaimer\/\">disclaimer<\/a><\/span> for more information.<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end --><\/div>\n\n<div id=\"FAQs\">\n<!-- .module.faqs-list: start -->\n<div  class=\"module faq-list pt-16 md:pt-20 xl:pt-24 pb-40 md:pb-64 xl:pb-80 hidden show-small:block show-medium:block show-large:block type-full\">\n\t<div class=\"container lg:grid lg:grid-cols-12 lg:px-80\">\n\n\t\t<div class=\"inner col-span-12 lg:col-span-10 lg:col-start-2 lg:col-end-12 bg-fn-ModBgLightTheme\">\n\n\t\t\t\t\t\t\t<h3 class=\"text-[27px] font-light leading-8 mb-24 md:text-[34px] md:leading-10 text-coreDarkGreen\" data-scroll-class=\"expanaFadeInUp\">\n\t\t\t\t\tFAQs\t\t\t\t<\/h3>\n\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"accordion first:border-t border-b border-digitalDarkGrey20 text-coreDarkGreen block\" data-scroll-class=\"fadeIn\" data-scroll-delay=\"500\">\n\t\t\t\t\t\t<div class=\"py-16 pr-16 md:py-24 cursor-pointer accordion-toggle\">\n\t\t\t\t\t\t\t<div class=\"flex justify-between\">\n\t\t\t\t\t\t\t\t<h3 class=\"text-md leading-6 font-labgMed\">\n\t\t\t\t\t\t\t\t\tHow quickly can a cost model be built?\t\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t<span class=\"toggle-icon *:size-[20px] flex items-center transition-transform\">\n\t\t\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"25\" viewBox=\"0 0 24 25\" fill=\"none\">\n\t<path class=\"icon-chevron-down\" d=\"M12.0582 14.6383L19.4082 7.28828C19.6582 7.03828 19.9499 6.91745 20.2832 6.92578C20.6166 6.93411 20.9082 7.06328 21.1582 7.31328C21.4082 7.56328 21.5332 7.85495 21.5332 8.18828C21.5332 8.52161 21.4082 8.81328 21.1582 9.06328L13.4832 16.7633C13.2832 16.9633 13.0582 17.1133 12.8082 17.2133C12.5582 17.3133 12.3082 17.3633 12.0582 17.3633C11.8082 17.3633 11.5582 17.3133 11.3082 17.2133C11.0582 17.1133 10.8332 16.9633 10.6332 16.7633L2.93322 9.06328C2.68322 8.81328 2.56238 8.51745 2.57072 8.17578C2.57905 7.83412 2.70822 7.53828 2.95822 7.28828C3.20822 7.03828 3.49988 6.91328 3.83322 6.91328C4.16655 6.91328 4.45822 7.03828 4.70822 7.28828L12.0582 14.6383Z\" fill=\"currentcolor\"\/>\n<\/svg>\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"overflow-hidden max-h-0 transition-all delay-100 duration-500 accordion-content\">\n\t\t\t\t\t\t\t<div class=\"pt-8 pb-24\">\n\t\t\t\t\t\t\t\t<div class=\"*:leading-6\">\n\t\t\t\t\t\t\t\t\t<p>With Expana IQ, a cost model for a finished product SKU can be built in minutes from a single product description. The platform maps ingredients, packaging, energy, and indirect costs automatically and keeps them current via API, removing the manual upkeep that makes most cost models go stale within weeks.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"accordion first:border-t border-b border-digitalDarkGrey20 text-coreDarkGreen block\" data-scroll-class=\"fadeIn\" data-scroll-delay=\"500\">\n\t\t\t\t\t\t<div class=\"py-16 pr-16 md:py-24 cursor-pointer accordion-toggle\">\n\t\t\t\t\t\t\t<div class=\"flex justify-between\">\n\t\t\t\t\t\t\t\t<h3 class=\"text-md leading-6 font-labgMed\">\n\t\t\t\t\t\t\t\t\tHow does cost modeling support new product development?\t\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t<span class=\"toggle-icon *:size-[20px] flex items-center transition-transform\">\n\t\t\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"25\" viewBox=\"0 0 24 25\" fill=\"none\">\n\t<path class=\"icon-chevron-down\" d=\"M12.0582 14.6383L19.4082 7.28828C19.6582 7.03828 19.9499 6.91745 20.2832 6.92578C20.6166 6.93411 20.9082 7.06328 21.1582 7.31328C21.4082 7.56328 21.5332 7.85495 21.5332 8.18828C21.5332 8.52161 21.4082 8.81328 21.1582 9.06328L13.4832 16.7633C13.2832 16.9633 13.0582 17.1133 12.8082 17.2133C12.5582 17.3133 12.3082 17.3633 12.0582 17.3633C11.8082 17.3633 11.5582 17.3133 11.3082 17.2133C11.0582 17.1133 10.8332 16.9633 10.6332 16.7633L2.93322 9.06328C2.68322 8.81328 2.56238 8.51745 2.57072 8.17578C2.57905 7.83412 2.70822 7.53828 2.95822 7.28828C3.20822 7.03828 3.49988 6.91328 3.83322 6.91328C4.16655 6.91328 4.45822 7.03828 4.70822 7.28828L12.0582 14.6383Z\" fill=\"currentcolor\"\/>\n<\/svg>\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"overflow-hidden max-h-0 transition-all delay-100 duration-500 accordion-content\">\n\t\t\t\t\t\t\t<div class=\"pt-8 pb-24\">\n\t\t\t\t\t\t\t\t<div class=\"*:leading-6\">\n\t\t\t\t\t\t\t\t\t<p>Cost estimates made at the start of an NPD cycle are rarely accurate by launch. A cost model integrated into the process updates as market prices move, so the business case reflects a live view of input costs rather than a snapshot from six months ago.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"accordion first:border-t border-b border-digitalDarkGrey20 text-coreDarkGreen block\" data-scroll-class=\"fadeIn\" data-scroll-delay=\"500\">\n\t\t\t\t\t\t<div class=\"py-16 pr-16 md:py-24 cursor-pointer accordion-toggle\">\n\t\t\t\t\t\t\t<div class=\"flex justify-between\">\n\t\t\t\t\t\t\t\t<h3 class=\"text-md leading-6 font-labgMed\">\n\t\t\t\t\t\t\t\t\tHow does a benchmark cost model strengthen supplier negotiations?\t\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t<span class=\"toggle-icon *:size-[20px] flex items-center transition-transform\">\n\t\t\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"25\" viewBox=\"0 0 24 25\" fill=\"none\">\n\t<path class=\"icon-chevron-down\" d=\"M12.0582 14.6383L19.4082 7.28828C19.6582 7.03828 19.9499 6.91745 20.2832 6.92578C20.6166 6.93411 20.9082 7.06328 21.1582 7.31328C21.4082 7.56328 21.5332 7.85495 21.5332 8.18828C21.5332 8.52161 21.4082 8.81328 21.1582 9.06328L13.4832 16.7633C13.2832 16.9633 13.0582 17.1133 12.8082 17.2133C12.5582 17.3133 12.3082 17.3633 12.0582 17.3633C11.8082 17.3633 11.5582 17.3133 11.3082 17.2133C11.0582 17.1133 10.8332 16.9633 10.6332 16.7633L2.93322 9.06328C2.68322 8.81328 2.56238 8.51745 2.57072 8.17578C2.57905 7.83412 2.70822 7.53828 2.95822 7.28828C3.20822 7.03828 3.49988 6.91328 3.83322 6.91328C4.16655 6.91328 4.45822 7.03828 4.70822 7.28828L12.0582 14.6383Z\" fill=\"currentcolor\"\/>\n<\/svg>\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"overflow-hidden max-h-0 transition-all delay-100 duration-500 accordion-content\">\n\t\t\t\t\t\t\t<div class=\"pt-8 pb-24\">\n\t\t\t\t\t\t\t\t<div class=\"*:leading-6\">\n\t\t\t\t\t\t\t\t\t<p>It gives procurement an independent view of what underlying inputs have actually done in the market. When a supplier claims costs are rising, a benchmark model built on live market data can validate or challenge that with evidence. The negotiation shifts from opinion to fact.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n<!-- .module.faqs-list: end --><\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":139,"featured_media":12971,"template":"","tags":[],"insight-theme":[236,167],"insight_topic":[],"news_topic":[],"class_list":["post-15370","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight-theme-commodity-hub","insight-theme-leaders-in-procurement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cost Modeling: 5 Value Levers Every Procurement Leader Should Be Using<\/title>\n<meta name=\"description\" content=\"Uncover the insights from procurement leaders on how cost modeling is reshaping the industry and cost 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