Calulating the Cost of a new vendor.
I am trying to find the standard method to calculate the cost of new vendors. Is there an industry standard or Best practice? Is there a standard number people assume or is there a formula that I can utilize?
Currently I have, the time keying the information for each step of the process. I then multiplied that by the average labor rate from the DOL. It seems extremely low. It doesn't account for time lost while waiting for the new vendor setup, because I wasn't sure how to quantify that as a cost. Also intangibles you get from a vendor that has treated you well over the years. I want to be able to answer to the CFO regarding the costs of a new vendor versus using and old one for a little more.
Thank you for any help,