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Negotiating with Suppliers

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HURRICANE HARVEY DISRUPTS OVER A THIRD OF U.S. CHEMICAL PRODUCTION

NEGOTIATOR’S TAKE: Hurricane Harvey has caused chemical and plastic prices to rise   |   08.28.17 – American Southwest – Recent mega-storm shuts 37% of U.S. chlorine output and 40% of ethylene; price gains have been urgently seen in already tight

Rack Up Savings

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

TRUST YOUR SUPPLIERS BUT NOT THEIR DATA: A ProPurchaser INSIGHT

   ProPurchaser INSIGHT: Trust your suppliers but not their data.   Trust vs. Data Of course you need to trust your suppliers: their products, delivery, quality and service.  Makes sense or why would you want to do business with them? 

Fishing with Suppliers: A ProPurchaser CORE PRACTICE

ProPurchaser CORE PRACTICE #5: Go “Fishing” with Suppliers.   I once had a very smart boss whose favorite expression was “Fish where the big fish are!” So where do the “big fish” lurk for reducing costs for the products and

US Electric Power Markets – National Overview

If you have ever wanted to understand changes in your suppliers’ electricity costs, you might find this U.S. federal government website useful. It identifies regions and ‘hubs’. The best news is that pricing for most hubs is free and a matter of

A BETTER WAY TO NEGOTIATE

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

Tag-Team to Wrestle Costs Down

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.

Don’t Sweat the Details – It’s the Direction that Counts

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

A Supplier’s Advice for Purchasing Custom Tradeshow Exhibits & Environments

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

Use labor productivity to drive down purchase costs

 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