Digital Should Cost Model
The narrated tour runs about a minute. Pause on any scene to explore: hover the figures, click a cost component, or change an input in simulation mode.
Procurement Intelligence
Finding the true cost of production has always been critical for procurement.
A reliable should-cost view is the foundation for smarter sourcing decisions.
Cost Breakdown WaterfallEUR / Metric Tonne
But navigating through Excel-based should cost models has always felt overwhelming and outdated.
Multiple tabs
Manual updates
Stale inputs
Cost_Model_Breakdown.xlsxX
fx
=SUM(B3:E6)AssumptionsInputsSummary
A
B
C
D
1
Driver
2
Raw material
3
Utilities
4
Labour
41
EUR/MT
5
Overheads
73
EUR/MT
Review
Inputs_and_Assumptions.xlsxX
fx
=VLOOKUP(A4,Inputs!B:E,3,FALSE)AssumptionsInputsSummaryCost Model
A
B
1
Input
Value
2
Energy
+8%
3
Freight
32
4
Yield
94%
5
Currency
EUR
Summary_Final_v9.xlsxX
fx
=Cost_Model!F12AssumptionsInputsSummaryCost Model
A
B
C
D
1
Category
Cost
Share
Note
2
Materials
612
75%
Check
3
Utilities
86
11%
Old
4
Labour
41
5%
Linked
5
Overheads
73
9%
Review
Digital Should Cost Model
At Procurement Resource, we've solved these problems with our digital should cost model solution
A clean, always-on model that is easy to navigate and ready whenever users log in.
Go beyond just the headline number and drill into each cost component
Raw Materials
Utilities
Operating Costs/Wages
Finance Cost
Depreciation
Identify the impact of key drivers and visualize how the cost of production has evolved over the years
% Impact of Key Drivers
Should - Cost Movement
ATH Cost of Production
ATH
India
2026M3
Industrial
Bayer
Total CostRs 17838.4/MT
Capacity (TPA)535500
Throughput %85%
Throughput (TPA)455175
Working Capital—
CapexRs15850.0 Mn
Total Investment—
Net RM Cost/MTRs 5255.5
Raw Material CostRs 5255.5
Co-Product CreditRs 0
+
Conversion Cost/MTRs 12582.9
Operating CostRs 546.4
Utility CostRs 6535.6
Financing ChargesRs 2480.2
Overheads CostRs 1399.0
Depreciation CostRs 0
Others CostRs 1621.7
=
Total Cost/MTRs 17838.4
Net RM CostRs 5255.5
Conversion CostRs 12582.9
% Impact of Key Drivers
Fuel oil
0.19%
1.94%
Caustic Soda flakes
0.17%
1.68%
Bauxite
0.14%
1.40%
Should - Cost Movement
ATH Cost Break Down (%)
Net Raw MaterialUtilityOperatingOverheadFinancing
Assumptions are clearly stated on the top user panel
Product
Country
Grade
Production Process
Annual Capacity
Throughput Rate (customizable by user)
CAPEX
ATH Cost of Production
ProductATH
CountryIndia
GradeIndustrial
Production ProcessBayer
Annual Capacity535500 TPA
Throughput Rate85%
Throughput (TPA) 455175
CAPEXRs15850.0 Mn
Scenario building made easy with the in-built simulation mode
Change a driver input and watch the total cost update instantly.
ATH Cost of Production
ATH
India
2026M3
Industrial
Bayer
Total CostRs 17838.4/MT
Capacity (TPA)535500
Throughput %85%
Throughput (TPA)455175
Working Capital—
CapexRs15850.0 Mn
Total Investment—
Raw Material : 5255.49 Rs/MT Product
Raw Material NameUnitConsumption Per MTPrice(Rs/Unit)Cost/MT Product
Caustic Soda flakesMT2717.41
BauxiteMT2264.40
LimeMT273.68
Co Product : 0.00 Rs/MT Product
Co-Products NameUnitProduction Per MTPrice(Rs/Unit)Cost/MT Product
Utility : 6535.60 Rs/MT Product
Utility NameUnitConsumption Per MTPrice(Rs/Unit)Cost/MT Product
Fuel oilMT3152.64
CoalMT2276.73
Electricity (In house)kWh1035.00
Process WaterMT71.22
Click on cost components to access component deep-dives
Consumption factors
Price per unit
Historical price data
ATH Cost of Production
ATH
India
2026M3
Industrial
Bayer
Total CostRs 17838.4/MT
Capacity (TPA)535500
Throughput %85%
Throughput (TPA)455175
Working Capital—
CapexRs15850.0 Mn
Total Investment—
Net RM Cost/MTRs 5255.5
Raw Material CostRs 5255.5
Co-Product CreditRs 0
+
Conversion Cost/MTRs 12582.9
Operating CostRs 546.4
Utility CostRs 6535.6
Financing ChargesRs 2480.2
Overheads CostRs 1399.0
Depreciation CostRs 0
Others CostRs 1621.7
=
Total Cost/MTRs 17838.4
Net RM CostRs 5255.5
Conversion CostRs 12582.9
Raw Material Cost Breakdown (%)
Caustic Soda flakesBauxiteLime
Raw Material Cost Progression
Raw Material Price Trends
Raw Material Cost : 5255.49 Rs/MT
Component NameUnitConsumption Per MTPrice(Rs/Unit)Cost/MT Product
Caustic Soda flakesMT0.06541806.362717.41
BauxiteMT1.81258.002264.4
LimeMT0.039122.62273.68
Digital Should Cost Model Solution
Your should-cost command center, always on.
Assumptions, cost breakdowns, simulation, and deep-dive analytics come together in one digital model.
Assumptions panel
Cost breakdown
Simulation controls
Deep-dive analytics
ATH Cost of Production
Total CostRs 17838.4/MT
PRODUCTATH
COUNTRYIndia
PROCESSBayer
UPDATEDToday
Production cost breakdown
Should-cost movement
Procurement Resource | Digital Should Cost Model Solution
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