I keep fond memories of my first sourcing assignment. It was both difficult and stressful, especially when it came to sourcing costs. During that first project, I understood that the initial quote from a supplier is a bit like the first five minutes of a movie. It gives you the premise, but it certainly doesn’t tell you the whole story. For some time, I was amazed at some buyers who’d like to brag about a low unit price they’d just negotiated. They made it sound like a victory. But I know better now. As I became a seasoned procurement professional, I learned that unit price and COSG (Cost of Sold Goods) are two very different animals. If you want to increase your value as a buyer and protect your company’s bottom line, you need to look beyond the unit price on the invoice. This is why I decided to write about all the sourcing costs that a purchaser has to deal with on a daily basis. I organized this post into 3 sections, from the most obvious sourcing costs to the least obvious. I hope that my take at categorizing costs into: cash, time, and labor; will make sense to...