Total Cost Model

The profitability of a product or product line is dependent upon your total product cost. Many times the total product cost is not visible to procurement decision makers; they make purchasing decisions based upon ex-factory or landed costs without the ability to know the costs of slow moving product, discounting or returns for defect. Without knowing the total cost of delivering a product to your consumers a supplier who offers the lowest ex-factory cost may seem to be the most competitive; but when you assess the associated costs of poor quality product, damaged packaging or poorly written instructions you learn those suppliers are actually not competitive and their products are damaging your brand image.

Rider Technologies can work with you to develop a reliable Total Cost Model that uses historical supplier and category data to inform your procurement decision makers of the true cost of products from your supply network.

Contact us today so we can help you with your total cost model.