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Digital Should Cost Model

Know Exactly What A Product Should Cost

Move beyond static spreadsheets and guesswork. See what a product should cost, how each input contributes, and where the negotiation levers sit across suppliers, processes, grades and regions.

A standalone Claight tool for cost and price intelligence · All tools

Digital Should Cost Model
Models / Caustic Soda / v3Share
Caustic SodaMembrane cellIndiaModel v3
Should cost$412/tBottom up, 200 kt/yr plant
Supplier quote$468/tReceived 2 Oct
Room to negotiate$56/t12% above should cost
Cost build-upUSD per tonne
Raw materialsUtilitiesLabourOverheadsDepreciationMargin
Component$/tShare
Raw materials15738%
Utilities14034%
Labour256%
Overheads379%
Should cost$412/t
Room to negotiate12%
About the tool

Know what a product should cost

The Digital Should Cost Model shows how supplier prices are built. It turns engineering and financial inputs into interactive cost breakdowns that support should-cost analysis, scenario comparison and stronger negotiation decisions.

A digital cost model is a structured, interactive view of the full cost of producing a product: raw materials, utilities, labour, overheads, co-products, CAPEX, financing and packaging, showing how each part contributes to the final price.

Built forProcurement and category teamsCost engineersFinance and leadership
Core capabilities

Clarity on production costs in one digital model

Compare scenarios, validate suppliers and drive cost decisions from one place.

Select a feature to see it in the tool

Digital Should Cost Model
Models / Caustic Soda / v3Share
Caustic SodaMembrane cellIndiaModel v3
Should cost$412/tBottom up, 200 kt/yr plant
Supplier quote$468/tReceived 2 Oct
Room to negotiate$56/t12% above should cost
Cost build-upUSD per tonne
Raw materialsUtilitiesLabourOverheadsDepreciationMargin
Component$/tShare
Raw materials15738%
Utilities14034%
Labour256%
Overheads379%
12-month change+4.2%Should cost
Quote gap today12%vs 10% a year ago
Main driverPower+9% tariff in 12 months
Should cost vs supplier priceUSD/t, quarterly
Q3 2023Q3 2024Q3 2025Q3 2026
Should costSupplier price
Edit inputsRecalculates instantly
Scenario resultvs base model
Should cost$412/tBase case
Raw materials157
Utilities140
Labour25
Overheads37
Global benchmarkCaustic soda, USD/t
Saudi Arabia$371
China$386
India$412
USA$455
Germany$498
Compare routes and grades
Route$/tvs base
Membrane cell48% lye412base
Diaphragm cell50% lye439+6.6%
Membrane cellFlakes468+13.6%
Search 10 cost modelsNew model
Model repositoryVersion controlled
ModelVersionUpdatedStatus
AmmoniaHaber-Bosch, natural gasv45 OctApproved
Caustic SodaMembrane cellv35 OctApproved
Soda AshSolvay processv228 SepIn review
Sodium SulphateMannheim processv221 SepApproved
Phosphoric AcidWet processv114 SepDraft
In practice

What procurement teams gain

  1. 01Transparent, production-grade should-cost models for priority categories
  2. 02Stronger negotiation positions backed by defensible cost breakdowns
  3. 03Faster pricing decisions when markets move
  4. 04A shared view of costs across procurement, finance, operations and leadership
  5. 05A living cost repository in place of scattered spreadsheets and email threads
Case study · Specialty chemical manufacturer

Strengthening negotiation control through should-cost intelligence

Challenge

The client had little clarity on how supplier prices were built, which limited its negotiations.

Approach

We built a Digital Cost Model covering 10 materials, including Ammonia, Caustic Soda, Soda Ash, Sodium Sulphate and Phosphoric Acid, breaking down raw materials, energy, labour, overheads and CAPEX across suppliers and regions.

Results
10materials modelled in one digital cost model
Stronger negotiations and better control of critical chemical intermediates
See it in action

How supplier prices are built

Our methodology

How we build it

  1. 01Data collection and structuring

    Data from ERP systems, contracts, technical documents and market databases, standardised into one cost structure.

  2. 02Process mapping

    Manufacturing routes, material usage, utilities and site overheads mapped to real plant operations.

  3. 03Cost model development

    Costs calculated with engineering logic and market inputs, with transparent, traceable assumptions.

  4. 04Validation and refinement

    Outputs checked against historical costs and supplier quotes.

  5. 05Digital deployment and enablement

    Models deployed in interactive dashboards for scenario analysis and ongoing updates.

What clients say

Teams that use Should Cost Model

Digital cost models changed how we talk to suppliers. We now have a quantified view of what a product should cost.
Procurement LeadGlobal FMCG
The simulator and sensitivity views save us weeks of manual recalculation. We change feedstock prices or yields and see the cost impact immediately.
Cost EngineerChemical Manufacturer
For our strategic materials, the model is the single source of truth for should-costs. It has improved our budgeting and negotiation discussions.
CFOIndustrial Products Company
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