SectorsTrade and manufacturing
Trade and manufacturing
Purchasing decisions, supplier assessments and price negotiations run on experience and relationships.
What it usually gets called:Purchasing experience, supplier knowledge, margin leakage
Concrete
Incoming documents processed, matched against historical data, deviations flagged
The buyer knows which supplier sharpens their pencil at which volume. That knowledge is written down nowhere; it sits in twenty years of phone calls.
Nobody sees the margin leak, because there is never a comparison alongside it — there is only the price that was accepted.
What a system does here is put the comparison next to the decision at the moment the decision is made. Not afterwards, in a report.
Trade and manufacturing: what is the bottleneck costing you?
Twenty minutes to work out whether there is a sprint in this, and which size.