Архив рубрики: Purchasing pricing

Tweet Before choosing a supplier, the purchaser should analyze the total cost of ownership (TCO). In the broadest definition, the total cost of ownership of an intermediate or consumer goods includes all costs  to manage and control the timing and conditions of performance , accelerating the passage of stocks, transportation, inspection and testing, rework , storage , waste, warranty , maintenance, downtime , return to customers and lost profits. In other words, the total cost of ownership is comprised of the purchase price and all other expenses related to this product. 

Tweet The cost of raw materials and products is usually set on the basis of market prices that are experiencing the daily fluctuations. As a rule, the price of this product at any given moment is less important than the overall trend of price changes.