Potential Suppliers

Potential Suppliers

 

When a supply management anticipates that a cost analysis will be required, he or she should include a request for a cost breakdown with each request for a quotation. This is the proper time to make such a request, not after negotiations have started. This is critical! Suppliers cannot complain that making this breakdown is an extra burden at this time, since they must perform such an analysis to prepare their bids. A simple procedure used by a number of progressive firms for obtaining cost breakdowns is to include the following statement with their request for quotations: “We will not consider any quotation not accomplished by a cost breakdown.” Not all suppliers readily provide cost-of-production information; however, the number refusing to do so for non-standard items is declining.