Best-case calculations

 

Comparing quotations is still the customary way of pricing in purchasing departments, even in the case of high-volume bought-in parts. Detailed methods such as best-of-bench are based on the same principle and do not minimise the disadvantages.

 

 

Best-case calculations are worthwhile for components and subassemblies that have to be purchased in large quantities, and which account for a considerable proportion of the purchasing volume.

 

ProWerk can calculate the price of your bought-in parts similarly to your suppliers and based on the following assumptions:

 

  • the very latest, optimum manufacturing technologies for the particular application,

 

  • best possible boundary conditions with respect to location, corporate organisation and machinery.

 

These calculations enable us to equip your purchasing department with sound arguments for negotiating prices with your suppliers. The effects are often amazing:

 

  • The high profit margins of suppliers can be identified immediately.

 

  • The potential when deploying modern manufacturing technologies becomes evident to the suppliers as well.

 

  • Shortcomings in organisational, labour costs and overheads structures become transparent.

 

Best-case calculations provide a lever for achieving sizeable reductions in the prices of bought-in parts or form the nucleus for re-integration or outsourcing projects with considerable profit potential.