“A cynic is a man who knows the price of everything, and the value of nothing.” - Oscar Wilde, Irish Playwright
Although he probably didn’t mean to — okay, definitely didn’t mean to — Oscar easily could have been talking about the way many companies look at purchasing class “c” components, or working with VMI (Vendor Managed Inventory) suppliers.
Granted, class “c” components and Vendor Managed Inventory aren’t the sexiest things around. After all, class “c” components such as nuts, bolts, washers, and fasteners are just nickel and dime parts. Unless you go through a few thousand of them a day. Then we’re talking serious money. That’s why it’s so important that we get beyond merely thinking of their acquisition cost and instead concentrate of total value.