Episode 8 – How to Handle Unexpected Raw Material Price Increases

Raw material price increases are an unavoidable part of sourcing in categories exposed to commodities, energy, freight, foreign exchange and geopolitical disruption. The difficulty for procurement is not simply that input costs have increased. It is determining how much of that increase has actually affected the supplier’s cost base and how much should be reflected… Continue reading Episode 8 – How to Handle Unexpected Raw Material Price Increases

Episode 9 – Inside a Supplier Quote: How to Calculate Material Cost and Conversion Cost

A supplier quote often arrives as a single number: the unit price. For procurement teams managing direct materials, components, or custom parts, that number is rarely sufficient. The unit price is the result of a cost build-up that includes material inputs, manufacturing processes, overheads, margins, and sometimes hidden assumptions. Without understanding how that number was… Continue reading Episode 9 – Inside a Supplier Quote: How to Calculate Material Cost and Conversion Cost