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Gauging total cost, supplier by supplier

By MARY LU HARDING

Because it reveals hidden costs, the "unit total cost" approach to purchasing can help companies accurately evaluate the cost of doing business with individual suppliers.

From the Quarter 04 2007 issue

Many companies want to create the optimum supply chain for their organizations. Often, however, they don't have the information they need to reach that goal. The problem is that optimization requires visibility into all supply chain costs—yet companies frequently limit their focus to supplier- and transportation-related expenses....

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