Supply Chain Executive

Avoid Overpaying for Outsourced Parts

Do These Challenges Sound Familiar?

  • How am I going to increase the percentage of parts my team is able to review this year for cost reduction opportunities?
  • Is there any way we can accurately estimate COGS for outsourced parts so I know I’m getting a reasonable quote from my suppliers?
  • The engineers really need a quote back for these new parts – Can’t anyone help me accelerate this process?


How aPriori Can Help

With few sourcing personnel and grueling deadline pressures, it is difficult for companies to know if they are paying the best possible price on every one of their outsourced parts. While this deficiency has been tolerated in the past, the constant pressure on corporate performance combined with increasing material and energy costs, is forcing product companies to pay closer attention to what they are paying external suppliers to make their parts. Fortunately for sourcing experts, aPriori solutions are making it possible for them to ensure consistently optimal pricing for their outsourced parts and products.

aPriori software and services help sourcing teams overcome the time and information obstacles and achieve significant product cost savings. Through aPriori’s real-time product cost information, sourcing professionals always know precisely how much a part or product “should cost” to manufacture. Access to precise “should cost” information enables sourcing experts to easily identify where they are overpaying for outsourced parts and to always negotiate the best deals with suppliers. The result is significant product cost savings en route to meeting (or surpassing) cost reduction goals.

With aPriori, “should cost” information is instantaneous and automatic. Simply open a part in the aPriori interface and the software combines information from the part’s geometry, the materials being used and more to generate the precise “should cost” number. aPriori’s patent-protected logic not only determines how much the part should cost, but also details the most-efficient (lowest cost) method for producing the part. As a result, the sourcing team not only has a target price, but also a wealth of supporting information that can be used in any re-quoting, re-bidding or re-negotiating processes with suppliers.

Most importantly, with aPriori installed, sourcing team members can be sure they are getting the best deal for each new part or product they outsource to suppliers. Moving forward, the sourcing team will have more confidence that all of the new parts are priced correctly from the start (and the company will save millions by not overpaying).

Leading product companies rely on aPriori to help them drive costs out of products both pre- and post-production. Using aPriori along with a simple methodology based on best-practices, sourcing professionals can quickly and easily identify and confirm opportunities that can result in significant product cost savings.