While the need to understand total cost is important whether we are dealing with a domestic or foreign supplier, the complexity that surrounds worldwide sourcing underscores the need to understand an expansive set of cost elements. This wider set of elements is what widens the gap between a price paid and a total cost realized. While total cost information is out there, with so many cost elements to consider, the job of consolidating this information into a useful analysis can be intimidating. Discuss the four A’s of Total Cost Data and if this type of information would be helpful in your organization.
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