Cost Engineering

Our core competence in cost engineering lies in Should Costing. "Should Cost" is the optimum cost a product "should" incur to a company considering the best available manufacturing & regional processes. It identifies all significant cost drivers and provides "Cost Insight" for essential decisions during sourcing and manufacturing. These insights comprise of material cost, process cost, overheads, and profit.​

Why do companies need Should Cost Optimization?

Assessing true cost of a product requires detailed due diligence of material cost, manufacturing process, and logistics or delivery cost. This information along with the willingness of the market to pay on top as profit defines the true cost of the product.​

cost engineering

Serve as a tool for supplier negotiation​

cost engineering

Measure cost savings potential 

cost engineering

Help in Make vs Buy decisions​

cost engineering

Improve in-house productivity​

How does should cost help in Supplier Negotiation?

Should Cost is a powerful fact-based negotiation tool. When used by the right experts in the industry, it provides information that can potentially save millions of dollars. Through our experience working with clients, we have seen that the initial quote provided by the supplier is substantially higher (first bar in the chart). Our experts provide detailed “Should Cost” analysis to our clients that help them realize potential savings opportunity (marked as Leverage of ¥ 500 per component). With this leverage on their side, our client often go into the meeting with supplier with holistic information and can save part of the leverage through fact-based negotiations(Savings of ¥350 shown here). The final quote arrived through such information based discussion is always mutually rewarding for the client as well as their suppliers.



Goken supports clients at every step of the Should Cost process” Reach out to learn more about our expertise in Should Cost.​


Receive Sourcing Request From Buyer


Input – 3D Model and Drawing


Route Manufacturing Process


Prepare Should Cost Model & Report


Negotiate With Supplier Based On Gap Analysis


Provide Approval For Sourcing

Our services specially designed for Cost Engineering