The quality of your suppliers will have a major impact on the quality and margin of the products and services you will deliver. Additionally you want to find marque suppliers to use as part of your brand association. Life cycle costs: defects requiring rework, defects requiring return, warranty or guarantees, durability. Also consider payment terms. Show Objective Given a contracting economy with diminishing business opportunities and inflation devaluing the currency, can you identify and build a relationship with suppliers where both parties will prosper from the alliance.

EPISODE 45: Summary The place to start is to compute all associated costs for buying, using, servicing the input and add to the initial price. Did you pick the right supplier? Use this metric to evaluate current relationships and it provides a model to interview and evaluate future suppliers.