Purchasing resource

Compare suppliers on total purchasing cost, not unit price alone

A practical framework for comparing supplier quotations using unit price, tooling, MOQ, freight, packaging, lead time and commercial risk.

A practical framework for comparing supplier quotations using unit price, tooling, MOQ, freight, packaging, lead time and commercial risk.

Unit price

Start with the quoted unit price, but confirm exactly what it includes.

One-off costs

Tooling, fixtures, programming, NRE, qualification and setup can materially change economics at low or medium volumes.

Logistics

Packaging, freight, shipment frequency and Incoterms affect landed purchasing cost.

Working capital

High MOQs and long lead times can increase inventory and cash requirements even when unit price is lower.

Risk

A cost comparison should also show the operational effect of long replenishment times, single-source dependency or uncertain capacity.

Working on a supplier search?

CAS can turn these principles into a scoped supplier search, qualification or RFQ project.

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