There are a few ways you can go about achieving your margin objectives. You can engineer the product cost to price, negotiate to price or a combination of both. Below we are going to explore engineering product cost to gain a winning price.
Before you visit a new vendor to assess their capabilities, receiving samples of their previous production will give you the opportunity to examine their quality, manufacturing technique, expertise and innovation.
Supply Chain Solutions No.7 – When reviewing price look at the End to End cost “Total Cost of Ownership”
As per sourcing Tip #6, we are all tempted only to look at the vendor price alone, but there are additional factors which must be considered to determine the “Total Cost of Ownership”