Robert A. Rudzki

Robert A. Rudzki is president of Greybeard Advisors LLC, a firm that assists enterprises to improve their financial performance.

"Should Cost"—From Spreadsheets To Science

"Should Cost"—From Spreadsheets To Science

When companies purchase parts or components, historically they have comparison-shopped to find the lowest-cost supplier. But forward-thinking companies are now applying the concept of "should costing" to procurement instead. In essence, they analyze what a product should cost to determine what they ought to pay for it. The emergence of should-cost systems is paving the way for companies to perform true-cost analyses of suppliers' parts.