Learn how you can leverage our 15 years of shop floor costing data to move to optimal pricing. OCV is based upon AI and Machine Learning and provides companies with detailed analysis of supplier quotes against best-in-class Optimal Cost Models. High performing purchasing organizations use Optimal Cost Validation to: Engage in supplier negotiations based upon facts that are validated within the industry Ensure buyers are buying at the right price Simulate multiple scenarios for … [Read more...]

Linear modeling provides a fast and easy way for buyers to do great things like identify savings opportunities, estimate pricing and estimate process metrics like cycle time and press size. In this educational podcast series we will show how buyers can develop models and how to use them to move to optimal costs. Attendees will receive a step-by-step how to develop linear models guide.   Click Below Video Podcasts: Stampings--Live Podcast--August 6th at … [Read more...]

Celebrating 15 Years Passion for understanding costs and working collaboratively with suppliers to reduce it led me to establish APD some 15 years ago (incorporated on June 30, 2019). I did not grow up with my mother whispering in my ear “You want to be in purchasing”.  Instead, it was Charlie Ross, a Purchasing Manager at Ford, who recruited me with my freshly minted MBA and manufacturing operations experience into purchasing back in 1984. At the time, GM, Ford and Chrysler had 80% or so … [Read more...]

Are you Living in a Flat Data World?  Most buyers who ask and receive detailed cost breakdowns use them to support the sourcing decision that is facing them and then instead of creating a data pool they put the breakdowns to the side.  They are living in a flat data world.  What is the alternative? Leading companies do not live with flat data.  Instead they employ a systematic approach to identify the right data to collect on commodity specific cost breakdowns.  What is the right data?  It’s … [Read more...]

Advanced Purchasing Dynamics Unveils Optimal Cost Validation Program – Based Upon AI and Machine Learning! Optimal Cost Validation (OCV) enables purchasing organizations to easily understand if they are buying at the right price PLYMOUTH MI -<June 5, 2019>- Advanced Purchasing Dynamics, a leading purchasing consultancy has unveiled a game changing program that will enable purchasing organizations to better understand if they are achieving optimal costs and buying at the right … [Read more...]

Experience has taught us that buyers who have cost breakdowns entrenched as a part of their sourcing process achieve prices that are 2-5% lower than buyers who buy the same commodities without detailed cost breakdowns. What differentiates those who save 5% from the ones that only save 2%?  Following are the key differentiators employed by high performers: They utilize commodity specific cost breakdowns.  Trying to use one format that incorporates the needs of many commodities often … [Read more...]

In whack-a-mole a person hits the mole forcing it down only to have it pop right back up in another location.  In quotation whack-a-mole buyers push on an area of supplier costs in order to get pricing to go down only to have costs pop-up in another area bringing prices up as well.  … [Read more...]

A well-designed detailed cost breakdown is the foundation for saving money by enabling the understanding of ‘manufacturing processes and costs. Buyers rely on cost breakdown analysis to reduce material costs and ensure competitive pricing on purchased components. However, the effectiveness of using detailed cost breakdowns is directly correlated with how well the cost breakdowns are designed. Well-designed detailed cost breakdowns reflect the cost drivers that are important to a specific … [Read more...]

We have 15 years of data that shows that buyers who move from price-focused, competitive purchasing to cost/value-focused, collaborative purchasing can achieve savings of 8-18% (see figure). I wish we had a similar level of data on the career progression experienced by buyers who develop cost knowledge and utilize it in a collaborative way.   I think it would be revealing. It has been my experience that buyers who develop a deeper understanding of cost also increase their knowledge of … [Read more...]

For the past few years I have participated in career development academies for a couple of industry associations by doing a short negotiation primer. The facilitator for the sessions always leads off with an exercise he likes. The exercise assigns the trainees into groups A, B and C and gives Group A the most negotiation power, Group B the next highest level of power and Group C the lowest. … [Read more...]