A large U.S.-based maker of electrical equipment categorized castings as a key strategic purchased item and systematically analyzed its own demand in terms of the annual volume and relative complexity of each type of casting. It assessed, foundry by foundry, the capabilities of each potential supplier and decided, by comparing alternative supply scenarios, which was the best fit. The resulting new mix of outside suppliers reduced the company’s outlays for castings by 5% to 15% and significantly improved its competitive cost position.