How Much of What to Buy from Whom/When
Contract manufacturers play a vital role in supply chains, but many companies often neglect to consider contracts in their planning processes. This oversight can hinder sourcing optimization, resulting in higher costs and an increased risk of disruptions. Â
By incorporating contracts and renewals into their supply chain strategy, businesses can optimize production beyond just volume and capacity. They can also take into account important contract terms such as locations, tiered pricing, and lead times. With Value Chain Optimization, companies can adopt a structured approach to contracts, ensuring that new agreements and extensions align with their overall portfolio. This alignment helps drive better sourcing decisions and minimizes risk.Â
- Optimal volume allocation across multiple vendors/contractsÂ
- How should we think about input cost vs. supplier payment terms?
- What to source from which vendors where and when? What are the cost, timing, and cash-flow trade-offs?
- Sourcing (purchasing) alternatives
Productivity and margins
Inventory throughput
Operating costs through better strategies
How Value Chain Optimization Transforms Strategic Sourcing for Our Customers




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