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Sourcing Cost Analyst
7 days ago
General Summary:
The primary duty of a Sourcing Cost Analyst is to generate and report product cost modeling
They will have a critical role in analyzing and estimating all attributes of product costs
This role will be responsible for building comprehensive 'should cost' models to evaluate and benchmark the cost structure of SKUs, enabling informed decision-making, improving product build strategies, and driving cost reduction initiatives
This role will also track and report on commodity trends and provide product level impact insights to cross functional teams
They will develop and grow an expertise in commodity analysis, cost analysis, manufacturing processes, and market analysis to be able to generate accurate product cost models and actionable insights to support global sourcing, merchandise, and private brands with sourcing engagements, negotiations, and product development efforts
The Sourcing Cost Analyst will collaborate closely with cross-functional teams, including global sourcing, merchandise, private brands, and logistics to identify cost inefficiency opportunities, enhance cost transparency, and drive cost optimization across our product portfolio.
Principal Duties & Responsibilities:
Product Cost Modeling: Develop detailed 'should cost' models for SKUs by analyzing material inputs, manufacturing processes, labor, overheads, currency, logistics, and other cost factors
Utilize expertise and detailed research to estimate costs for each component and build comprehensive item cost models.
Cost Model Benchmarking: Compare 'should cost' estimates to received market data to identify cost-saving opportunities, inefficiencies, and areas for improvement
Refine models accordingly and provide actionable insights to drive cost reduction and product improvement efforts.
Negotiation Support: Work with merchandise, global sourcing, and private brands teams to evaluate proposals and assist in the development of negotiation strategy with suppliers-based cost transparency and 'should cost' analysis
Suggest cost-reducing specification modifications that still achieve quality and product use-case goals
Commodity Trend Reporting: Monitor and analyze commodity data for trend fluctuations and supply chain risks and proactively produce trend analysis reporting.
SKU Specification Evaluation: Facilitate collection and validation of SKU specifications to identify opportunities for cost optimization, tariff engineering, and value enhancement by suggesting design modifications, alternative materials, or process improvements based on 'should cost' models.
SKU Specification Support: Assist with the preparation of market bid SKU specification prior to go-to market requests for proposals.
Monitor innovations and refine models: Perform market research and data gathering from various industry, government, trade sources, trade shows, and market innovation reports to ensure and enhance the accuracy of 'should cost' models.
Awareness and Training: Educate and train sourcing and buying teams on 'should cost' analysis methodology, tools, and techniques to foster cost-conscious decision-making across the organization.
Maximize profitability through product cost savings initiatives factoring in impact from sourcing strategy shifts, manufacturing practices, duty landscape, macro-economic variables, payment terms, logistics models, business and consumer needs.
Other strategic sourcing projects as assigned.
Minimum Requirements/Qualifications:
Bachelor's degree in engineering, Economics, Supply Chain, or a related field
Proven experience as a Product Cost Analyst, Financial Analyst, or similar role, with a focus on product cost modeling and understanding of manufacturing processes.
Strong critical-thinking, analytical and quantitative skills with the ability to interpret complex cost data and build accurate cost models.
Experience in product value engineering and strategic sourcing.
Knowledge of manufacturing processes, materials, and cost drivers across various industries.
Communication and presentation skills to convey reports and recommendations.
Ability to work in a collaborative cross-functional work environment.
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