End-to-end costing
Making a direct comparison on purchase price is relatively easy, but it can be much more complex to assess the total cost and profitability impact across the whole supply chain, particularly if the different options include choices such as: different countries of origin; air versus sea or other transport modes; alternative packaging formats and their impact on handling characteristics and container fill; varying quantities and possible combination with other orders.
But making that assessment is particularly necessary as the cost of sourcing from some low cost countries starts to rise as increased aspirations start to feed inflation.
Our models help companies to compare the results of the many trade-offs involved in a sourcing decision and can also be used to examine the impact of volatile external factors such as exchange rate changes, oil price movements and interest rates.