A ProPurchaser CORE PRACTICE: Never enter negotiations without first researching what has happened to your supplier’s costs Two Ways We Engage with Suppliers As Purchasing professionals, we use two main approaches to establishing prices with suppliers. The first is through
The arithmetic is simple: profits are being squeezed. Finding ways to drive down costs lower than your competition’s has become more important than ever. Here, we describe a different approach to supplier negotiations that might help you gain an edge.
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
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
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
ProPurchaser INSIGHT: Tired of being blamed for price increases that you have no control over? There is a solution. The annual ritual Most Purchasers are called upon each year to prepare a budget for the products they buy. Given the
If your business is expanding into new markets or facing competition in existing ones, can you benefit from enhancing your green credentials to meet consumer preferences? Greening your supply chain could provide a competitive edge in markets where consumers are increasingly
Stan Hankowski, a seasoned Buyer with a major American retailer tells an intriguing story that shows how Purchasers can help themselves by helping their suppliers. He went to market last year to buy steel racking. He expected higher prices because he’d