The Real Cost of a Part

What's the real cost of a part?Supply chain accounts for a significant expense within any business. Each item that is ordered must be processed, handled and stored. A single component requires labor to PROCURE and RECEIVE it, then unpack and inspect it for quality assurance. Your business must absorb the cost of WASTE disposal. The component is then entered into INVENTORY for eventual KITTING or process within the supply chain. There are labor costs to package and ship it to its destination. Finally, a team has to process the paperwork for BILLING. In the end, a 26 cent resistor can require the efforts of as many as 11 people to process it plus inventory carrying costs.

We at Action call this True Cost Exposure. For over 21 years Action has been the first choice when looking to add value in your development and production process allowing you to reduce costs within the supply chain.

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