SOURCING & SUPPLY CHAIN

The Real Cost of a Low Factory Quote

1 min read

Unit Price Is Only the Beginning

A supplier can be five cents cheaper and still be the more expensive choice. The true cost of purchasing includes defects, rework, delays, freight, duties, inventory, internal labor and the commercial damage created when a launch misses its date.

Defects Have Multipliers

A defective component does not only cost the value of that component. It can consume filling labor, oil, packaging, testing time, customer-service resources and replacement freight. Quality failures become especially expensive once value has been added downstream.

Cheap Inventory Can Become Expensive Inventory

Large MOQs can make a quote look attractive while tying up cash in product that takes too long to consume. Regulatory changes, artwork changes or product revisions can turn excess inventory into obsolete inventory.

Value Is Price Plus Confidence

Greencoast defines value as the best balance of price, quality, performance, reliability and supply-chain execution. GreencoastGO™ supports that equation by reducing preventable quality surprises, while DDP pricing helps customers compare the cost that actually reaches their door.

Send us the product, volume and your current or target price. Before you place the order, check Greencoast.