Use cases06 / 010
moves margin

Procurement. Rationalized SKUs, negotiation leverage.

The problem

Direct material is the largest line on the P&L and the least visible one. Prices get set at an RFQ and carried forward for years, nobody has time to rebuild a cost model per part, and so the buyer negotiates against last year’s price instead of against what the part is worth.

What we deploy

Eridian stands up should-cost models from your own bills of materials, PO history and supplier quotes, then keeps them current as material, energy and freight move. Every part carries a modelled cost, the gap to what you actually pay, and the annual volume behind it — so the negotiation list ranks itself.

01

Should-cost models per part, built from material, process time, freight and margin — traceable to their inputs rather than a black box.

02

A ranked negotiation list: cost gap times annual volume, so the largest exposure is the first call you make.

03

Duplicate and near-duplicate parts surfaced across plants, with the consolidation already costed and PPAP status checked.

In the Ontology

The objects this use case reads and writes — stood up during the diagnostic, shared with every use case that follows.

PARTBOMSUPPLIERPO LINESHOULD-COSTPLANT
Field result
$41.2M

parts savings surfaced, Tier-1 automotive supplier

Automated cost-optimization of a Tier-1 automotive supplier’s bills of materials toward a rationalized parts list — with volumes an agentic procurement system then negotiates against.

Find the ROI

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