Total Cost of Ownership
Determining True Product Cost
Part 4 of Strategies for Successful Procurement Partnerships
The final part of our four-part procurement white paper series, by Joe Williamson, Sr. Director, Global Sales & Customer Operations at KEP, teaches how to look beyond the obvious for hidden costs and risks in procurement. How to appropriately assess a potential supplier’s strengths and weaknesses and build good communications to reduce costs are detailed in this white paper.
In this White Paper, you’ll learn how to:
- Use the RFQ to determine true product cost.
- Recognize that the bid price is just the tip of the iceberg – beneath the ice lies all the costs that provide the real cost of ownership.
- Look for hidden costs – such as costs of managing, logistics and distribution, reworking, training, cost of sourcing and more.
- Discover overall supplier strengths and weaknesses
- Build good communications to reduce cost.
- Share information – build trust and expect solutions.
- Determine what matters – spirit and ability, not size.
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