SourcingApps is a host of analytical tools that use best price & costs practices to help you quickly analyze quotations and answer questions that your suppliers generally do not want you to ask because the answers will result in your getting better prices. Often better prices come from finding heretofore undiscovered value in the sourcing process rather than your suppliers’ reduction in margins. A half-hour spent using SourcingApps may save your thousands of dollars.

Supply Principle

Best Practice

SourcingApps Tools

Annual volume estimates are used as a basis for establishing pricing in contracts for both direct and indirect material.

Annual volumes are used in most cases for all material with volume/price leverage. Often models that predict project life cycle costs are used.

Experience curve
Fixed & variable cost analysis
Learning curve analysis
Break-even analysis
Total Cost Ownership

Analytical techniques are used prior to and during the negotiation or discussion process with suppliers.

Planning is formalized, requiring specific analysis prior to discussions with suppliers. The analysis are documented for reference during the negotiation.

Quantity discount analysis
Fixed & variable cost analysis
Experience curve analysis
Learning curve analysis
Price productivity analysis
Break-even analysis

Should costs ” determination is formalized and documented.

Should cost” prices are set for all new product materials by across-functional review when designs are being developed. These prices are followed through the purchasing process and any variance is tracked.

Fixed & variable cost analysis
Learning curve analysis
Stanford-B analysis
Price productivity macro
Price productivity micro
Break-even analysis

Price changes and surcharges are managed with suppliers.

Changes in price are there sult of joint work on the element sof cost in the supplier facility and the cost to use the material in the buyers’ application.

Energy surcharge calculator
Fixed & variable cost analysis
Price productivity macro
Price productivity micro
Learning curve analysis
Stanford-B Analysis
Break-even analysis
Economic order quantity