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Technology means a lot of different things to different people—from the systems put in place to help you integrate with current suppliers, through the telecommunications systems used to connect you to the outside world, to the software used to manage your business. The one common element across all these technology platforms is that they become dated very quickly.

If implementing the requirement you are sourcing has a technical component (for example, your current supplier transmits reports concerning a certain product or service that integrate directly into your enterprise resource planning [ERP] system), a cost is most likely associated with that implementation, and many times that cost has already been amortized and used as a reason not to pursue alternative sources of supply. However, it could be that the requirement is outdated and difficult for the supplier to maintain. This may lead them to markup your pricing both to cover their costs and to dissuade you from utilizing that service. It could also be that a different technology may produce efficiencies that would result in less need for management oversight.

Do not let the desire for achieve quick, easy results persuade you to exclude potentially relevant suppliers or technologies. Exploring these options and performing a thorough total cost analysis (including the cost of change) could provide for cost savings opportunities well beyond what could be gained from a unit‐cost perspective alone.