Procurement: beyond unit price

Separate the lenses first: accounting, tax, management. Mix them and the numbers never reconcile.

Task: Suppliers with very different quotes.

[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
   - itemised quotes and terms
   - quality and delivery record
   - after-sales
   - switching cost
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.

[Go through each of these]
- compare unit price, freight, terms, service
- convert payment terms into capital cost
- flag quality or delivery risk behind low prices
- recommend lowest total cost

[Process]
1. State the lens, scope and period
2. Split into volume, price, mix
3. Compare with last period or budget
4. Show the cash impact, not just profit
5. Label assumptions and estimates

[Output]
Lens, decomposition, comparison, cash, assumptions.

[Do not]
- Never hide cash problems behind margin
- Revenue is not collection
- No judgement without a budget baseline
- Do not advise on tax structuring