You're sourcing new raw material suppliers under pressure. How do you balance quality and cost?
When you need to source new raw material suppliers quickly, it's crucial to maintain a balance between quality and cost. Here are some strategies to help you navigate this challenge:
How do you balance quality and cost when sourcing under pressure? Share your thoughts.
You're sourcing new raw material suppliers under pressure. How do you balance quality and cost?
When you need to source new raw material suppliers quickly, it's crucial to maintain a balance between quality and cost. Here are some strategies to help you navigate this challenge:
How do you balance quality and cost when sourcing under pressure? Share your thoughts.
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A research and development section is essential. Testing samples after simulating their use can enhance understanding of new raw materials, reduce uncertainty, and prevent potential losses.
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Balancing Quality and Cost When Sourcing Raw Material Suppliers - **Set Clear Standards:** Define quality requirements and specifications up front. - **Evaluate Supplier Options:** Compare potential suppliers on both quality and cost. - **Negotiate Terms:** Discuss pricing flexibility for long-term contracts or bulk orders. - **Consider Total Cost:** Factor in shipping, handling, and any quality-related costs. - **Test Materials:** Conduct quality checks on samples before making large purchases.
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In the past, I have found it helpful to do the following: - Use the resources at the R&D or corporate lab - Collect samples of existing products, it is easier to evaluate one product at a time using a Pareto chart to assist management choice of which one to start with - Collect samples of all competitors you're interested in, along with estimated quotes from Sourcing/Purchasing - Revise chemical database for key properties and performance expectations as needed - Develop customized in-house laboratory standardizing tests to help determine chemical property, concentration, and lab-to-line performance evaluations - Rate the competitors and work with Sourcing/Purchasing on the Supplier Performance Matrix before contract comparisons start