The unit price came down 8%. The minimum order went up fivefold.

A procurement win lands in margin the same month. What paid for it sits somewhere nobody is measuring, and it doesn't arrive in instalments.

By Steve 5 min read
Abstract bridge artwork for The unit price came down 8%. The minimum order went up fivefold.

A buyer comes back from a supplier negotiation with eight percent off a key input. It is a real result, achieved by a competent person, and it will show up in gross margin within a month of the first delivery at the new price. The concession that bought it is recorded in the same email, usually in a subordinate clause: the minimum order quantity moves from a hundred units to five hundred. Both facts are true. Only one of them is measured. The price variance flows into the management accounts…

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