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Scenario · Costing

The cheaper FOB that was answering a different question

Two prices for ‘the same polo’ — until fabric weight and pack were named.

Teaching scenario — not a published customer program. Composite situations for education; no customer is identified and no order is claimed.

The scenario

What happened.

  1. 01

    Situation

    A buyer spreadsheets three FOB quotations. Supplier B is fifteen percent cheaper. The program awards B. At PP sample the fabric is lighter, the pack is solid instead of store ratio, and embroidery was never in the price.

  2. 02

    Where it broke

    The brief left fabric weight as a range, decoration as ‘logo included’, and packing unspecified. Each factory answered a different question honestly. The spreadsheet compared the answers as if they were the same.

  3. 03

    The correction

    Normalise trade term, fabric specification, decoration route, packing and quantity before comparing. Ask every supplier what the price assumes. Fabric metres come from the marker — not from a GSM shortcut.

  4. 04

    Takeaway

    A lower FOB is only a saving when it answers the same specification.

Not a case study

For a documented manufacturing program with verified facts, see case studies. Scenarios exist to teach; case studies exist to evidence.

COST THE REAL SPEC.

Use the linked guides and tools, then send one style for commercial FOB costing.

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