Competing successfully on a worldwi

Competing successfully on a worldwide basis demands new andinnovative ways to identify and reduce supply chain costs. Buyers andsellers who view each other as strategically important must considernon-traditional pricing practices in their pursuit of competitive marketadvantages. This discussion presents cost-driven pricing as an innovativeapproach for managing the costs of selected items over the life of apurchase contract. Without creative cost management approaches andtechniques, supply-chain members risk losing ground to those companiesthat truly understand how to cooperate to succeed. This article discusseswhen to apply cost versus price analytic techniques, develops the conceptof cost-driven-pricing and contracting, presents a best-practice examplethat illustrates the cost-driven pricing concept, and identifies thepotential risks that must be managed within cost-driven agreements.

Competing successfully on a worldwide basis demands new and
innovative ways to identify and reduce supply chain, costs. Buyers and
sellers who view each other as strategically important must consider
non-traditional pricing practices in their. Pursuit of competitive market
advantages. This discussion presents cost-driven pricing as an innovative
.Approach for managing the costs of selected items over the life of a
purchase contract. Without creative cost management. Approaches and
techniques supply-chain members, risk losing ground to those companies
that truly understand how to cooperate. To succeed. This article discusses
when to apply cost versus price analytic techniques develops the, concept
of cost-driven-pricing. And, contractingPresents a best-practice example
that illustrates the cost-driven, pricing concept and identifies the
potential risks that. Must be managed within cost-driven agreements.