Supplier Cost Breakdowns

Using the Supplier Cost Breakdowns for a company providing original design and manufacturing (ODM) services in Austria we identified new cost saving opportunities for the company. Cost Breakdown analyze pointed out that even many suppliers didn’t charge them unreasonable costs there was forgotten one thing. In a company nobody recognized that scrap originated during production belongs to customer. In fact if customer pays the raw material gross weight then the related scrap should belong to customer. We brought new idea to the company. Cumulating the scrap cost retroactively we brought additional significant one time savings in amount of 30 000 Eur.