Should Cost Negotiation
Global supply chains are becoming more dynamic and complicated by the day. Most sourcing teams rely purely upon historical data comparisons to determine if they are paying a reasonable price for new product innovations. This approach is problematic as labor costs, materials costs and logistic costs are constantly changing. Illustrated below are some of the most challenging issues we see buyers struggling with today.
Late Discovery of MFG Issues
Discovering manufacturing issues on the shop floor of a remote manufacturing facility or a supplier is a sure fire recipe for missing product launch dates and eroding your profit projections.
Lack of Detail in Quotes
Most supplier quotes provide a fully burdened cost per part and maybe a break down that includes labor and materials costs, This perpetuates a culture of focus on the end price, not identifying the most efficient method for manufacturing a part.
Trade off Analysis
Wouldn’t it be nice to have the power to quickly study tradeoffs of a supplier in one region versus another, or one manufacturing approach versus another? Most sourcing teams struggle to do this efficiently.
How aPriori Can Help
aPriori makes it possible for companies to ensure consistently optimal pricing for their outsourced parts and products. With aPriori’s real-time product cost information, sourcing professionals always know precisely how much a part or product should cost to produce.
Supply Base Benchmarking
Enables commodity manager/transition manager to analyze and facilitate potential supplier changes. Helps to build business cases for changing to a new manufacturing technology.
Allows sourcing professionals to identify design outliers, price outliers, manufacturing inefficiencies, etc., using batch costing capabilities and our business intelligence tool.
Helps sourcing managers to negotiate more effectively with suppliers using detailed manufacturing data generated from should cost estimates.