Sourcing success depends on accurate cost data, and yet in many manufacturing companies that data is scattered - locked in disconnected spreadsheets, outdated systems and departmental silos. Procurement calculates one way, while Engineering applies different assumptions and Controlling even relies on last year’s figures. Cost Engineers are stuck stitching together half-complete inputs, validating assumptions on the fly and chasing after numbers, all while RFQs continue to stack up.
This is the everyday paradox in cost engineering during sourcing: you’re expected to move fast, align across departments and defend your numbers – all while your input data is fragmented across tools, spreadsheets and teams. According to the Manufacturing Leadership Council, 70% of manufacturers still enter data into spreadsheets manually, and 68% still use them for data analysis. At the same time, 44% of surveyed manufacturers say their data volume has doubled in the past two years and expect it to triple by 2030. As a result, manufacturers deal with more data but actually have less trust in it. This explains why cost logic becomes inconsistent, collaboration breaks down and supplier decisions get made based on the loudest opinion, not the best data. And in a sourcing environment where margins are tight and timelines are short, that’s a serious risk.
At first glance, data fragmentation looks like a few minor inefficiencies: version mismatches, missing data or an outdated cost model. But under pressure, these small gaps turn into major roadblocks. In manufacturing sourcing, delays aren’t just annoying - they’re expensive. Quote validations take longer; supplier feedback loops break down and internal alignment becomes harder to reach. That’s where fragmented systems quietly start to hurt margins and credibility.
When every team pulls from a different Excel sheet, quote email or ERP export, cost assumptions can quickly diverge. Engineering might model with a material price, while Controlling uses last year’s labor rate and Procurement negotiates based on a third benchmark. None of them are wrong, but they are not aligned. This kills trust in the final cost number and slows down sourcing decisions with unnecessary internal debates.
Fragmented systems force Cost Engineers to act more like data managers than analysts. Hours are spent searching for supplier quotes and verifying material inputs, or formatting cost breakdowns to fit different reporting needs. This manual effort slows teams down and distracts them from more valuable tasks like scenario planning and quote validation. When data gathering takes longer than the decision itself, competitiveness suffers.
RFQ timelines are short, but internal approvals tend to drag out when models need constant fixing. Buyers are forced to act without all the data, or without full alignment from Engineering and Controlling. The result is rushed sourcing decisions that lack cost clarity and often leave money on the table during negotiations.
Data silos don’t just slow things down, they block critical information from flowing between teams. Engineering might track technical cost drivers, Procurement might follow supplier trends, and Controlling might model spend curves. But if these insights live in disconnected systems, none of them can drive better outcomes.
Without a consistent cost model, there’s no clear way to spot pricing outliers or justify why your number is more accurate than the supplier’s. You’re left with shaky logic and missed opportunities to push back. And when commodity prices shift or new quotes arrive, it’s nearly impossible to adapt quickly without rebuilding the whole model from scratch.
At some point, all the disconnected spreadsheets, legacy ERP exports and team-specific workarounds stop being “good enough.” They slow down sourcing decisions, introduce errors and make it impossible to compare supplier quotes with confidence.
Tset’s product costing software replaces this fragmented approach with a centralized, cloud-based platform built for fast, consistent and technically sound product cost calculations.
Standardized logic: Everyone works from the same methodology - Procurement, Engineering and Controlling. No more merging Excel versions or reconciling inconsistent assumptions.
Automated cost breakdowns: Tset generates full bottom-up calculations using embedded data modules, thereby cutting modeling time from hours to minutes.
Up-to-date master data: Live material prices and secondary data integrations keep your cost models accurate and defendable during negotiations.
Variant and scenario management: Simulate make-or-buy, CO₂ impact and design variants in a single platform – all without rebuilding models from scratch.
No IT bottlenecks: As a cloud-native solution, Tset requires no internal IT or infrastructure setup. All updates, support and maintenance are handled as part of the license.
When everyone uses different assumptions and scattered tools, sourcing decisions slow down and become hard to justify. You lose time chasing inputs, and it’s tough to explain where numbers come from. With product costing software like Tset, costing becomes consistent, faster to update, and easier to align across teams