Back to Course

Purchasing and Procurement

0% Complete
0/126 Steps
  1. Session One: Course Overview
    2 Assessments
  2. Session Two: Supply Chain Management Basics
  3. Session Three: The Purchasing Cycle
  4. Session Four: Purchasing Toolkit
  5. Session Five: Managing Competitive Bids
  6. Session Six: Improving Efficiency and Accuracy
  7. Session Seven: Improving Efficiency and Accuracy
  8. Session Eight: Managing Internal Relationships
  9. Session Nine: Tools of the Trade
  10. Session Ten: A Personal Action Plan
    1 Assessment
Session 4, Topic 8
In Progress

The Scope of Costs

1 Sep 2021
Session Progress
0% Complete

As the procurement manager, you have to remain aware of how widely costs can vary among manufacturers. Some have high costs, and others are low. Quality is not always tied to cost, so you must do your research to find the right supplier.

  • Some of the important factors that influence cost include:
  • Management and leadership capacity
  • Amount and quality of subcontracting (and whether the supplier can meet the targets you agree on)
  • Plant capacity, sustainability, and efficiency

Because these factors change continually, you can have one supplier that requires a high cost on one item but can produce others at a low cost. These factors make it essential that you obtain competing bids, and when appropriate, that you leverage competition to keep your supplies at the lowest cost possible, while still getting the desired quality and meeting your timeframes.

Payment Failed