Scenario: the cheaper supplier that costs more
Two quotes, one obviously cheaper — and why total cost of ownership flips the choice.
Two quotes, one obviously cheaper — and why total cost of ownership flips the choice.
Same component, two suppliers. On price alone, it's no contest. On total cost, it's the opposite.
Supplier ASupplier B
Unit price€9.40€9.95
Lead time5 weeks2 weeks
Defect rate4%0.5%
Payment termsNet 15Net 45
Min order2,000500
The hidden costs
- Defects. At 4%, Supplier A's rejects and rework quietly erase the €0.55 saving.
- Lead time. Three extra weeks ties up cash and risks the schedule.
- Terms & minimums. Net 45 and a 500 minimum ease your cash flow; A's 2,000 minimum forces over-ordering.
Supplier B is 6% more per unit and cheaper on every axis that isn't the sticker price.
Scoring on total cost, not headline price, is exactly what SourceWright is for.
this is SourceWright
It's in the works.
SourceWright is in development — join the waitlist for early access.