Zero Base Pricing: Achieving World Class Competitiveness Through Reduced All-In-Costs
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Zero Base Pricing: Achieving World Class Competitiveness Through Reduced All-In-Costs Overview
America's most successful companies have begun to redirect their product pricing and cost-cutting efforts from merely trying to get the best price from their suppliers to a more rigorous and all-emcompassing new concept called Zero Based Pricing.
This new approach, based on the all-in-costs approach to purchasing management, addresses all the phases of a product's manufacturing process, including it's design, the procurement of raw materials and/or the component parts or sub-assemblies, the labor and production equipment and plant used to manufacture it and its quality. The breadth of Zero Based Pricing even extends to the firm's relationships with it's unions and outside suppliers, the goal of which is to create a partnership to produce the best product at the lowest possible price.
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