MARKET INTELLIGENCE 05 / GLOBAL SOURCING
RISK · CAPABILITY · CONTINUITY
The cheapest quote
is not always the lowest cost.
A modern sourcing framework for comparing complete supply propositions rather than isolated commodity prices.
THE SOURCING EQUATION
Price is one
variable.
The actual economics of a sourcing decision can include product suitability, consistency, documentation, logistics, working capital implications and the consequences of supply disruption.
That makes sourcing a multi-variable risk and capability decision.
THE COMPLETE PROPOSITION
Six dimensions of
supplier comparison.
01Product
Does the format suit the application?
02Specification
Are critical requirements aligned?
03Capability
Can the supplier manufacture consistently?
04Documentation
Can qualification requirements be supported?
05Logistics
Does the delivery architecture work?
06Continuity
Can the relationship support repeat supply?