Offensive costing. Get onto it!
Rose-tinted procurement fairytales are a thing of the past.
Hand on heart: Comparing offers is so yesterday.
No detailed cost analysis = no order.
Buyers these days are looking for worldwide supply security and optimal procurement costs. The competition is stiff. Buyers go over every cost factor again and again with a fine-toothed comb. Standardized methods are used to produce target price calculations, after which the parties hold another round of negotiations. The reward can be savings of up to 20%!
If producers want to compete at the head of the pack, a number of things are expected of them in addition to optimal quality and impeccable delivery performanc:
1. Minimum costs for purchased materials
- 2. Robust processes and manufacturing costs at a best-practice level
- 3. Competitive, plausible pricing