![]() The costs can however be broken down into three basic categories: labor, material and miscellaneous expenses. It is relatively difficult to calculate precise foundry costs, as there are different types of foundries and several types of casting processes that are used by each foundry. Apart from the questionnaire, it also important to discuss capacity, transportation costs and other material related aspects prior to signing the agreement, in order to avoid disappointment after placing an order. ![]() These responses will also serve as the basis for understanding the foundry’s emphasis on quality control and determine whether they produce high-grade castings. After receiving the responses, it is the duty of the buyer to cautiously understand the responses in order to determine whether a supplier will able to deliver the desired quality of material in adequate quantity. The buyer can utilize a questionnaire to procure all the information that he needs from the suppliers to make an informed decision. It does not make sense to enter into an agreement with a facility that is running out of business. It is important for the buyer to look for more reliable information and to carefully consider the match between his business needs and each foundry’s capacity. The buyer can make use of any method such as referring the buyer’s guide or advertising material or getting recommendations from previous buyers or even from the inside staff. This is perhaps the most important step in the entire procurement process.
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