Procurement teams are under constant pressure to reduce costs. On larger projects, where every percentage point counts, it’s understandable that the lowest quotation draws most attention.
But there’s an often overlooked question that needs to be considered alongside price: what’s the cost of waiting?
When a saving creates a cost
We’ve recently seen projects where a supplier offered the lowest price, but with a significantly longer lead time. At quotation stage, the saving looked attractive. But once the extended delivery period worked its way through the project, the costs it created elsewhere far outweighed it.
A valve is part of a schedule
A valve is rarely bought in isolation. It sits within a wider project schedule covering engineering, fabrication, commissioning, installation and start-up. When one critical component arrives late, the effects ripple through the entire supply chain.
A delayed delivery can lead to:
- Missed project milestones
- Installation teams standing idle
- Rising expediting costs
- Additional inventory requirements
- Deferred production or revenue
- Greater project risk for EPCs and end users
Measuring value across the whole project
Seen in that light, the most useful question for procurement becomes: who delivers the greatest value to the project?
In oil and gas, hydrogen, LNG, power and process sectors, certainty of delivery can be worth far more than a small difference in purchase price. Weeks saved on delivery can protect milestones, keep site teams productive and bring production forward.
Where responsive manufacturers add value
Manufacturers with in-house engineering, flexible production and responsive supply chains are well placed to help. They can react quickly, accommodate changes and shorten lead times, and that responsiveness often produces a stronger commercial outcome than a marginally cheaper quotation.
At Colson Valves, our in-house engineering and manufacturing in Rotherham give us the flexibility to respond when project requirements change and to keep lead times under control.
Who offers best value?
Price will always be part of the decision. But the truest measure of a successful project is the total cost of achieving its objective – and time is part of that cost. Sometimes the best-value option on the spreadsheet is the supplier who helps keep the project moving.
Which would make the bigger difference to your business today: saving on price, or saving six weeks on delivery? If lead time is already putting a project at risk, see how Colson supports manufacturer changes without losing time.
Talk to our team about lead times for your next project.