SupplyVerdict

Transparent by design

How SupplyVerdict reaches a supplier verdict.

Calculations are deterministic, use the values entered in the project, and expose missing or estimated information instead of hiding uncertainty.

Assumption provenance

Know where every important value came from.

SupplyVerdict keeps input state separate from calculation output. A calculated value is derived from the inputs below; it is not independently verified.

Provided

Entered or confirmed by the user from a quotation or known business assumption.

Confirmed zero

A confirmed zero receives confirmation credit and is never displayed as missing.

Estimated

An assumption that is not yet confirmed by the relevant authoritative source.

Calculated

Derived by SupplyVerdict from other inputs using the documented methodology.

Scenario override

A temporary scenario value that replaces the base-project assumption for comparison only.

Missing

A required or decision-relevant value has not been supplied.

01

Landed inventory cost

Landed inventory total combines supplier merchandise, per-unit packaging and prep, plus known order-level costs such as tooling, inspection, domestic transport, freight, insurance, duty, brokerage, and destination delivery. Missing costs remain missing in quote coverage and decision confidence; they are never silently inferred.

merchandise + (per-unit sourcing extras × quantity) + order-level costs
02

Landed cost per unit

The total sale-ready inventory cost is divided by planned quantity. A zero or invalid quantity produces a structured unavailable result rather than Infinity or NaN.

landed inventory total ÷ planned quantity
03

Amazon selling costs

Per-unit selling costs include referral fee, FBA fulfillment, monthly storage, inbound placement, other marketplace cost, expected advertising cost, and the return-loss reserve.

referral fee + FBA + storage + inbound + other marketplace + ads + returns reserve
04

Expected profit and margin

Expected net profit per unit subtracts landed cost and selling costs from selling price. Net margin divides that result by selling price.

(selling price − landed cost − selling costs) ÷ selling price
05

Break-even ACoS and selling price

Break-even ACoS is the advertising share available after every non-ad cost. Break-even selling price accounts for percentage-based referral, advertising, and returns assumptions. Non-positive denominators produce an explicit invalid state.

break-even ACoS = (selling price − non-ad costs) ÷ selling price
06

Deposit and inventory cash

Deposit due applies the supplier's deposit percentage to merchandise, packaging, and tooling, then adds sample cost. Inventory cash required equals the estimated landed inventory total and excludes ongoing operating overhead.

deposit = manufacturing subtotal × deposit rate + sample cost
07

30-day launch cash

The launch estimate adds inventory cash to expected advertising spend for the smaller of planned quantity or first-month sales. Amazon disbursement delays are not modeled.

inventory cash + first-month units × advertising cost per unit
08

Inventory coverage and capital payback

Coverage divides planned units by expected monthly sales. Payback units estimate how many sales recover inventory cash using cash returned after selling costs; payback months divide those units by expected sales. These are estimates, not demand forecasts.

payback units = ceil(inventory cash ÷ cash returned per sold unit)
09

Quote coverage

The existing weighted 100-point completeness review is shown as Quote coverage. It checks price and quantity, incoterm and origin, deposit and lead time, packing, freight, duty, delivery, prep, and explicit confirmation of other charges. Coverage is not calculation validity, Decision confidence, or permission to pay. Confirmed zero remains different from missing.

Weighted field-group confirmations, scored from 0 to 100
10

Calculation status

A Valid calculation means the current inputs produce finite, structured outcomes. It does not mean the values are confirmed, verified, or commercially certain.

Valid or unavailable from structured calculation outcomes
11

Decision confidence

Decision confidence combines quote coverage, critical logistics gaps, invalid economics, custom incoterm clarity, estimated-cost share, missing decision-relevant values, and unconfirmed product or Amazon defaults. It measures the completeness and certainty of this analysis—not supplier trust, legitimacy, product quality, or a guaranteed outcome.

High, Medium, or Low from documented deterministic thresholds
12

Category winners and balanced recommendation

Eligible quotes receive separate testing, margin, landed-cost, cash, payback, and quote-strength conclusions. The balanced recommendation considers only commercially viable options and internally weights margin, cash, payback, coverage, lead time, and completeness. The internal rank is not presented as a universal public score.

Separate category rules + min-max normalized balanced dimensions
13

Scenarios and downside presets

Supplier scenarios inherit the base quote and apply only explicit supported overrides. Freight, advertising, sales, return, and combined downside presets are temporary and reversible; they never overwrite canonical project values. Scenario results and decision confidence use the displayed overrides while the scenario is active.

Base quote + explicit overrides + temporary downside assumptions
14

Negotiation targets

Targets use current economics to calculate a maximum unit-price guardrail, a two-month test quantity where relevant, a 30% deposit request for higher terms, lead-time guidance, and missing information required before deposit. SupplyVerdict never suggests negotiating upward.

Targets are generated only where the existing negotiation engine supports them

Limitations

Use the result as a decision aid, not a guarantee.