Linear Performance Pricing
You can see to the left, our strategic sourcing strategy analytics led us to quote out some tubing. This graph represents similar tubing with the only difference being length. We have two parts that are on our "low cost" line that allows us to identify potential procurement cost reduction opportunities.
Outliers - Procurement Cost Reductions Opportunites
As you can see on the graph to the right, we have some outliers circled. This shows us that our strategic sourcing strategy was correct. Based on our analytics, the regression analysis showing that this tubing is similar, we should have prices for these outliers closer to the line. The Sourcing Guys will dive deeper into this analysis to capture this type of opportunity.
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