Business Solutions

With our industry profile data you can evaluate your buying performance, gain insight into industry cost structures, and negotiate more favorable contracts. Provided below are several examples detailing how to best utilize the industry insight we provide. Please visit our industry coverage page for a full listing of all the industries we provide coverage on.

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Jump to a solution

• Building a Cost Model: The building block behind price analysis.
• Budget Analysis: Improve your understanding on how different products impact your bottom line.
• Benchmarking: Learn to communicate your successful purchasing strategy.
• Contracting: See how to better navigate contract negotiations.
• Supply-Chain Analysis: Identify the source of pricing pressure.

Building a Cost Model

A cost model is a core component of many price analysis solutions. In building a cost model, it is important to identify the material, labor, and indirect costs associated with a product. This data can sometimes be obtained from a supplier. If not, public data can be used as a starting point.

Having trouble with steps one and two below? Visit the cost section of the industry of interest from our industry coverage page. This can be a good starting point. Also, feel free to contact us for assistance.

How to build a cost model in five steps

1. Identify the major cost categories for the product.
2. Identify the weight of each cost category on the overall manufacturing cost of the product.
3. Select an industry from our coverage list to represent each of the categories identified in step one.
4. Download the price data for each industry selected in step three. For help downloading the data, please contact us.
5. Calculate the weighted cost index using the weights identified in step two and the proxy price series downloaded in step four.

Budget Analysis

Overwhelmed by the budgeting process? Confused about how to identify the impact of direct materials on your bottom line?

With our industry cost breakdown you can trace the impact of over 60 industries on your budget. Use this information to improve operational efficiency and plan future spending requirements.

Prepare a detailed budget analysis in just five steps

1. Identify your major budget categories and the weight of each category on your overall budget.
2. Select an industry from our coverage list to represent each of the categories identified in step one.
3. Download the cost breakdown data for each industry selected in step three. For help downloading the data, please contact us.
4. Apply the category weight from step two to the corresponding industry costs selected in step three.
5. Aggregate the individual cost components by industry for a complete picture on how your budget is impacted by the various industries.

Benchmarking

Need to communicate your successful purchasing strategy? Having trouble measuring and improving your purchasing performance?

Ntect provides insight and data on obscure markets where pricing and escalation rates may not be transparent. This information can help you measure your performance against your peers.

Evaluate your purchasing performance in just five steps

1. Visit the industry coverage page and select the industry your organization belongs to.
2. Navigate to the Industry Costs section of the Industry Profile you selected in step one.
3. The cost index provided in the Industry Costs section is an indicator of the industry's average change in costs.
4. Evaluate your organization's buying performance relative to the cost index shown. For help downloading the data, please contact us.
5. If you need any assistance or require something more detailed please contact us.

Contracting

Contract negotiations dragging on for months? Want to speed up future negotiations and make the process more transparent?

Using our price analysis tools you can make negotiations faster, easier, and more fair for both you and your supplier. We can help you build a price adjustment mechanism that will ensure both parties get fair pricing.

Improve your contract negotiation in just five steps

1. Identify the base time period. Generally, this will be set to the date of the contract signing.
2. Identify an index value to use in the base period. Often, this is set to 100.
3. Determine the price in the base period. This is the value negotiated in the contract at the time of signing.
4. Determine the frequency at which the price is adjusted.
5. Build a cost model to use as a price adjustment mechanism.

Supply-Chain Analysis

Concerned about how a shortage of iron ore could pose a risk to your organization? Want to calculate the magnitude a change in costs to your supplier will have on your purchases?

Our cost breakdown tool can help you identify how costs will be passed through your supply chain. Understanding this can empower you to unlock savings or prepare for potential swings in pricing.

See how costs are passed through your supply chain in five steps

1. Visit the industry coverage page and select the industry your suppliers belongs to.
2. Navigate to the Industry Costs section of the Industry Profile you selected in step one.
3. The table titled "Major Industry Costs by Sector" contains a breakdown of your supplier's costs.
4. Examine the cost components listed in the table to identify the source of pricing pressure.
5. If you want to dig deeper, return to step 1 and follow the same steps further up the supply chain.