What’s The Price (Buynamics): Vendor Analysis — Cost Management solution overview, competitors, user considerations, analyst summary

This Spend Matters Vendor Analysis gives an overview of What’s The Price (WTP), a solution built to quickly provide procurement professionals with insights into the costs and prices of any product or commodity.

Successful supplier negotiations begin long before a category manager sits down at the negotiating table. Effectively sourcing a product or component requires understanding the fundamentals driving a category, the competitive dynamics in a given industry and a negotiation strategy based on realistic prices or savings that procurement hopes to attain. The same is true for new product development. A good product cost estimate enables organizations to test various options, from design, such as using raw material A or B, to sourcing options.

In addition, estimating the real cost of a product or service enables organizations to build a reference they can use to benchmark their purchase prices, identify outliers and detect gaps compared to the market. The latter is even more critical in times of price volatility.

But determining how much something should cost — that is, what procurement should realistically pay for goods or services — is more often than not a process supported more by guesswork than by data science. Building cost models can be time consuming; cost engineers creating clean-sheet calculations of a product’s likely cost often take weeks before coming back with an estimate.

When the price for raw materials rises, procurement professionals can be sure their supplier will be on the phone to set expectations of cost increases. But it is not a two-way street. When market prices fall, you can be sure the phone won’t be ringing off the hook! To avoid these ‘silent slopes,’ it is critical for companies to have a way to understand cost structures and market movements.

That is precisely why WTP exists. It can deliver an estimated price for any category, industry, or product in less than five minutes.

This Vendor Analysis provides an overview of WTP, a look at its competitive landscape, selection tips and an analyst summary.

Here is why WTP matters:

To the market — Few solutions on the market can match WTP’s ability to quickly provide accurate should-price estimates for raw materials, commodities, complex products and even services.

To potential buyers — WTP is a valuable solution to enhance an organization’s capabilities related to price intelligence and management, and it may even be an interesting alternative to more complex and more costly PLMs for design-to-cost for purchased goods.