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Saturday, 26 July 2008
 
 

Commodity Management vs. True Cost Management

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Commodity Management vs. True Cost Management

The current concept of "commodity management" is flawed. It's flawed because it is treating even highly engineered components like circuit boards, sheet metal fabrications and cable assemblies as commodities, where one circuit board is just like another other circuit board, and the only determining factor is price. With custom engineered components, there are a lot of varying factors that go into what that part is going to end up costing to produce, and what the product is going to end up costing the customer (you) to use.
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