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Cost to Serve Analysis—And the Costs of Neglecting It

Logistics Bureau

With that question answered, I’m giving the rest of this article over to highlighting several business and supply chain issues, which, if you are experiencing them in your enterprise, are potent indications that CTS analysis should be on your agenda —for execution at the soonest. We’ll begin with a look at pricing strategy.

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Here’s The Problem: Your Procurement Driven Transportation Sourcing Process Stinks!

247 Customs Broker

Our rates are going up and the carriers are completely unwilling to negotiate with us—where did we go wrong?”. First, the typical procurement-driven sourcing event views transportation as a commodity and thus, is oriented toward getting the lowest price. In this market, your carriers know that they don’t have to “negotiate” with you.

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7 Mini Case Studies: Successful Supply Chain Cost Reduction and Management

Logistics Bureau

per chip were bearable for units selling for $100, but the price of the new chip was a fraction of that, at about $20. Supplier communication. However, the company needed to reduce supply chain expenditure significantly after bringing its low-cost “Atom” chip to market. Supply chain costs of around $5.50 Inventory planning.

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Factory Gate Pricing and Primary Freight Strategies

Logistics Bureau

The Factory Gate Pricing (FGP) and Primary Freight (PF) strategies, as adopted by major grocery retailers, are causing a shudder up the spine of many retail suppliers. What are Factory Gate Pricing and Primary Freight strategies? Under the FGP and PF models, the retailers collect the products from the suppliers factory gate.