How One Buyer Used Joint Cost Modeling to Cut Prices 14 Percent

Episode 41 of The Buyer's Side digs into joint cost modeling: a procurement tactic where buyers and suppliers open their books together to find savings. Lucas and Luna walk through the real case of a mid-size manufacturer that shared its own cost data with a long-time supplier, then together built a cost model that identified $2.3 million in waste — without squeezing margin. They break down how the buyer prepared the data, how the supplier reacted, and why joint cost modeling works best when the relationship is already strong. Along the way, they discuss common pitfalls like data mistrust and scope creep, and the surprising side effect: the supplier later proposed their own cost-reduction ideas. If you've ever wondered how to cut costs without burning supplier goodwill, this episode is worth your time. #JointCostModeling #Procurement #CostReduction #SupplierRelationships #B2BPurchasing #StrategicSourcing #OpenBookNegotiation #Manufacturing #SupplyChain #CostTransparency #BuyersSide #FexingoBusiness #BusinessPodcast #Sourcing #Negotiation #DataDriven #SupplierTrust #CostSaving Keep every episode free: buymeacoffee.com/fexingo