Purchasing

A Failed Mindset: “No One Will Pay More For An OH Unit When SV Is Cheaper.” Who Won This Debate?

A Failed Mindset: “No One Will Pay More For An OH Unit When SV Is Cheaper.” Who Won This Debate?

I was on the phone with a supplier and wanted to argue with him. It took immense self-control.

We needed an actuator for a maintenance project, so I called the supplier for a quote.

The actuator cost between $15,000 to $25,000 depending on the condition.

He had one serviceable (SV) and overhauled (OH) unit.

He asked me what condition I preferred. I told him it depends on the tag date, but I prefer overhauled.

In a quick reply, he said he had both, but he’ll quote SV as why would I pay for OH when SV costs less.

What A Shortage In Supply Chain Professionals Means For You

What A Shortage In Supply Chain Professionals Means For You

Maintenance supply chain teams all over the world have a problem. For every graduate with supply chain “skills,” there are six positions to be filled. And it’s only going to get worse. It’s expected to increase to nine to one soon. If you rely on purchasing high-value or large volumes of anything, this is a troubling statistic.

The Number One Reason Purchasers Fail When Buying Aircraft Material

The Number One Reason Purchasers Fail When Buying Aircraft Material

If the price is your only game, it’s a shame. Here's why.

Do you purchase aircraft material on a daily basis? 

If so, you may have a habit costing you hundreds of hours of your own personal time and thousands of your operations dollars every single year. 

This habit is what I call price over cost syndrome.