Posted: July 22nd, 2015 | Author: Ethan Davis | Filed under: Uncategorized | No Comments »
This blog contains proven, useful techniques and best practices that will help you better prepare for negotiations with suppliers. The benefits are obvious, both for you and your employer.
But before you read any further, we strongly suggest you take a few minutes and watch this video:
Click for Video
It contains excerpts from a lecture given by Rod Sherkin at Bryant University, Rhode Island. Watching will put everything below into context and – more importantly – accelerate your mastering of ProPurchaser’s CORE PRACTICES.
Posted: October 6th, 2015 | Author: Tom Bowers | Filed under: CSR in purchasing, Energy, Gem, Greening the Supply Chain, What's Happening in Our Profession | Tags: energy saving, storage | No Comments »
When considering the greening of any supply chain it is easy to ignore the impact of warehousing and distribution centres.
Transport miles are often shown to potential consumers, but what about the environmental cost of storage?
Understandably, the main focus in distribution centres is often the streamlining of the distribution process. This video of the Ocado distribution centre makes this optimisation geek very excited. But it is not difficult, and not necessarily expensive, to improve the green credentials of your warehousing.
Read the rest of When Warehousing Goes Green » » »
Posted: October 6th, 2015 | Author: Adam | Filed under: Commodities, Metals, Negotiating with Suppliers, Steel, Uncategorized, US Dollar, USA | Tags: best practice, commodities, dollar, Metals, negotiation, Scrap, steel, steel price, US | No Comments »
NEGOTIATOR’S TAKE: Falling steel prices mean opportunities continue to negotiate prices reductions for steel components.
U.S. hot-rolled and cold-rolled steel coil prices were still under pressure on Monday with many anticipating further declines but current levels were unchanged. Platts maintained its daily HRC and CRC assessments at $425-$435/st and $540-$550/st, respectively. All prices are normalized to a Midwest (Indiana) ex-works basis.
Mounting downward pressure
A service center source said that the mounting downward pricing pressure through last week could come to a head this week as mills continue to compete aggressively for orders. He had recently made a 500 st purchase and had three separate mills competing for the tonnage, which ended up being transacted below the current assessment level.
In addition, a second service center source said he did not anticipate the market to strengthen in the next couple of weeks as the supply of available steel in the market remains too high. He added that in a “normal market” he would be following the United Steelworkers ongoing negotiations with ArcelorMittal and US Steel more closely. However, the current depressed environment and glut of steel would mitigate the impact of a labor disruption. . . . read the rest of this ProPurchaser sourced article, HERE.
Source: PLATTS McGRAW HILL FINANCIAL, October 2015
Article Author: MICHAEL FITZGERALD; E-mail contact: email@example.com
Posted: October 1st, 2015 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: best practice, negotiation, steel, supplier | 1 Comment »
Years ago, while working for Green Giant, I phoned our steel can sales rep to ask for a 4% reduction. We had information suggesting steel prices had fallen 8%.
He certainly wasn’t very happy and, as expected, argued against any decrease.
“Are you saying you’re still purchasing steel at the same price as before?” I asked. “That would be surprising.”
“Um… no, of course not”, he said, “but look – let me get back to you.”
To learn more, follow the Negotiating Nugget on Propurchaser.
Posted: September 26th, 2015 | Author: Rod Sherkin | Filed under: Gem, What's Happening in Our Profession | Tags: best practice, plant tour | No Comments »
The struggle to find “good fit” suppliers never ends. And finding the right suppliers has never been more important than right now. The global recession has put many companies’ very survival at stake.
How do you make sure – really sure – that your supplier is capable of going the distance providing you with the price, quality and service that your company and your customers demand?
Well, you could take the sales rep’s word for it. But we strongly suggest you see for yourself.
Simple as it sounds, an actual tour is the best way to gather reliable information about your supplier‘s all-important cost drivers, quality commitment and service culture.
Read the rest of Plant Tours Worth every Minute » » »
Posted: September 21st, 2015 | Author: Rod Sherkin | Filed under: Energy, Gem, Natural Gas | Tags: energy, fracturing, horizontal drilling, natural gas, usa | No Comments »
The story of U.S. natural gas gets referenced a lot but you may not know whats going on. Here are 15 charts that tell the story of the U.S. natural gas market which has been completely changed by the rise of horizontal drilling and hydraulic fracturing.
In the past few years, new technologies and cheaper costs allowed producers to access gas trapped in parts of the U.S. previously considered unreachable.
Read the rest of The U.S. Natural Gas Story in 15 Charts » » »
Posted: September 16th, 2015 | Author: Rod Sherkin | Filed under: Best practices, Gem | Tags: best practice | 1 Comment »
Purchasers know how hard it can be to convince our superiors & peers that we are doing a good job.
We struggle with Suppliers all the time, arguing, calculating, cajoling, pushing back to get the lowest possible all-in costs – and still we sometimes go over budget!
Does this mean we are doing a poor job? Probably not!
via The Marketplace and the Five-Hundred Pound Gorilla on Propurchaser.
Posted: September 11th, 2015 | Author: Pascal Blanc | Filed under: Best practices, Gem, Negotiating with Suppliers | Tags: negotiation, rfp, supplier, supplier negotiation, tradeshow | No Comments »
Dear Purchasing Professional,
We usually don’t get to speak with you directly when we respond to an RFP. But if we could, this is what we’d say.
We’d like you to know that to get the best value when buying custom tradeshow exhibits you need to take a slightly different purchasing approach. These products require creative thinking (like advertising), and work best when uniquely crafted to fit your company’s needs.
Read the rest of A Supplier’s Advice for Purchasing Custom Tradeshow Exhibits & Environments » » »
Posted: September 11th, 2015 | Author: Adam | Filed under: Commodities, ethylene, Plastics, propylene, USA, What's Happening in Our Profession | Tags: Aromatics, August 2015, ethylene, Houston, Negotiating with suppliers, Polypropylene resin, Propylebe, Texas | No Comments »
NEGOTIATOR’S TAKE: Polypropylene resin prices continue to fall. Prices for parts and components today should be similar to what you were paying 6 years ago. Check with your Accounts Payable department to make sure this is true.
U.S. August ethylene contracts were mostly settled down 9.9% on Wednesday on weak spot prices. Sources said the drop of 3.25 cents/lb ($72/tonne) puts August contracts at 29.50 cents/lb. One large buyer did not agree to the settlement and was holding out for a steeper decline. The settlement puts contracts at their lowest since December 2008, when they settled at 28.5 cents/lb.
Lowest spot prices in six years
Sources said that spot prices in August fell between 7.0-7.5 cents/lb from July, pushing them to their lowest in more than six years. Cracker cash costs, however, were up less than 1 cent/lb despite cheap feedstock costs, mostly on weaker values for co-product credits such as propylene and aromatics.
The fall in August ethylene contracts still keeps contract prices above the spot market, which is atypical and is expected to lead to high volumes of spot transactions in September. US ethylene contracts typically settle near the start of the month for the previous month . . . read the rest of this ProPurchaser sourced article, HERE.
Source: ICIS, September 2015
Article Author: JOHN DIETRICH – View his biography, HERE. E-mail contact: firstname.lastname@example.org
Posted: September 9th, 2015 | Author: Adam | Filed under: China, Commodities, Copper, Crude Oil, Economic Indicators, Energy, Japan, Negotiating with Suppliers, Oil, Rubber, Thailand, Uncategorized, USA, Wall Street Journal, West Texas Intermediate, What's Happening in Our Profession, Yen | Tags: Association of Natural Rubber Producing Countries, china, commodities, Copper, energy, Global slump, indonesia, Negotiating with suppliers, Petroleum Exporting Countries, Singapore Exchange, Soft rubber, Texas light sweet, thailand, Tokyo, US | No Comments »
NEGOTIATOR’S TAKE: Rubber prices are at 6-year lows – a good time to approach suppliers for price decreases.
Rubber has emerged as one of the worst performers amid the slump in global commodities in recent weeks, thanks to a continuing glut of the material used in products from tires to condoms.
Benchmark futures in Tokyo are near their lowest level in six years
While copper is down 15% in the last three months and West Texas Intermediate crude oil has slumped 23%, benchmark rubber futures traded in Tokyo have sunk 27% to ¥167.80 a kilogram, around their lowest level for six years.
Rubber’s lack of bounce highlights how, as demand growth slows in key markets, the most vulnerable commodities are those whose producers have been unable to tame output over recent years . . . . read the rest of this ProPurchaser sourced article, HERE.
Source: The Wall Street Journal, September 2015
Article Author: LUCY CRAMER – View her biography, HERE. email@example.com
Posted: September 6th, 2015 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers | Tags: negotiation | No Comments »
Suppliers often use wage increases to justify nudging up prices each year, usually 1 or 2%. And it’s hard to argue: – seems reasonable, and it’s less than inflation.
But wages aren’t the real issue – labor costs are.
And the reality is that the average cost of a ‘unit of labor‘ is about the same today as it was 5 years ago.
Read the rest of Use labor productivity to drive down purchase costs » » »