The common belief is that supply chain is simply to establish a buy direct approach by cutting out the distribution chain and therefore realizing a cost savings. In part there is some truth to that philosophy but it is hardly the best and only methodology.
To truly understand your supply chain requires the unbundling of all levels from raw material to end user and drilling down in order to discover the "true cost". By following this approach it will take the help of your current suppliers, manufactures and research into the commodity you are focusing on to gain full transparency in your pricing. Remember, transparency in your pricing is what supply chain management is really all about..