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strategy and business

C.V. Ramachandran

All articles by C.V. Ramachandran

Setting Supplier Cost Targets: Getting Beyond the Basics

This third article in a series on balanced purchasing focuses on target costing and recommends a five-step process to optimize the cost of product designs still in development. A hypothetical development effort for a sports watch is used to demonstrate the process. If carried out properly and at the right level of detail, target costing can insure competitiveness without jeopardizing supplier cooperation.
January 1, 1997  - by Tim Laseter, C.V. Ramachandran, and Keith H. Voigt