One of the elements comprising a company’s total supply-chain management costs. These costs consist of the following: /n 1. Materials (Commodity) Management and Planning /n 2. Supplier Quality Engineering /n 3. Inbound Freight and Duties /n 4. Receiving and Put Away /n 5. Incoming Inspection /n 6. Material Process and Component Engineering /n 7. Tooling n/ Sometimes, there isn’t enough incentive for a contract manufacturer to upgrade plant equipment to a level of quality that a company requires, so the company will pay for the upgrades and maintenance to ensure high quality. The ratio of the sum of the localised raw material weights to the weight of the finished product.