The Purchasing Chessboard® is used to assign strategies and methods for reducing costs and increasing the value received from a supplier for a specific category. The first step is to find an appropriate classification for what “category” means. For example, if you are planning to build a custom home there are (roughly speaking) three levels at which you can operate:
- Builder: You contract out the entire house to a single builder who hires and handles all the contractors and suppliers for you.
- Contractors: You individually hire the contractors you need to get the job done—bricklayers, carpenters, plumbers, electricians, and so on—but let them handle the suppliers.
- Vendors: You yourself buy each and every brick, T-bar, drywall, pipe, wire, window, door, screw, nail, etc., that goes into your house.
KeywordsDemand Power Hydraulic Cylinder Construction Equipment Construction Machine Construction Machinery
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