The Cost of Change feature helps users track expenses related to switching suppliers. Users can set limits to control costs and analyze potential savings by comparing the cost of choosing a new supplier.
The feature allows users to link a Cost of Change column to any column in a bid sheet, customizing how the cost is calculated. Users can choose whether the cost is fixed or variable, giving them flexibility in making strategic decisions when changing suppliers.
To assign Cost of change as a column role, do the following:
- Go to Design > Bid Sheet
- Select the Columns tab
- In the Column roles section, locate the column used to track Cost of Change and select Not assigned
- Configure the column role and click Save changes
Users have the ability to restrict the Cost of Change from the standard limit award rule. By limiting the cost of change, users can effectively manage risk by imposing a budget constraint on switching costs.
- Navigate to Evaluate > Scenarios
- Select Add a scenario
- Add a Limit award rule
- Select of Other, and select column used to track Cost of Change from the dropdown menu
Variable costs: size of share impacts the value that is applied
Fixed costs: Size of share does not impact value applied
- Select for All bidders, on All lots
- Select At most, and specify a limit
- Go to Analyze > Scenario Analysis
- Select Cost calculation
- Configure the column to be used in Cost of change
- Define the Cost of change as Fixed or Variable charge
- Define whether or not the Cost of Change should be included in the optimization goal
Assigning the Cost of change role to a column will add new columns to the scenario reports.
- Online scenario summary
- Offline scenario analysis
- Offline negotiation guide
Users can toggle off the Cost of change calculation on a per-scenario basis