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 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.

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 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.

Custom trade show exhibits are not one-size-fits-all. They differ from system or portable exhibits such as standard pop-up and tabletop exhibits. In a nutshell, they are properties created specifically for your company and should not be valued strictly on a basis of price.

“Will this design represent our company better and thus generate more leads, sales, and press coverage?” is what you really need to ask yourself. Read the rest of A Supplier’s Advice for Purchasing Custom Tradeshow Exhibits & Environments » » »

Use labor productivity to drive down purchase costs

 Suppliers often use wage increases to justify nudging up prices each year, usually 1 to 3%. 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‘ has risen very little, over the last 5 years – only about 1/2% per year.

Read the rest of Use labor productivity to drive down purchase costs » » »

Sustainable supply-chain at risk: the US drought example

Weekly drought figures released  by the US Drought Monitor show the situation continues to be a problem with approximately 50% of continental US now suffering from a moderate drought or worse.

Despite recent precipitation bringing welcome relief and downgrading of the drought status in some parts of the country, the long term picture shows challenges remain.

Changing weather patterns and increasing likelihood of extreme weather events are pushing sustainable supply chain management up the agenda for many companies. The US drought is just one of many examples of how changing weather patterns can create clear and present supply chain risks.

Read the rest of Sustainable supply-chain at risk: the US drought example » » »

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 been tracking steel costs and knew they had gone up sharply.

via Negotiating Nugget on Propurchaser.

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 services we purchase – in better pricing, in longer terms, in faster order processing, in speedier delivery? All important yes, but in my experience they are not the trophy-fish.

The best cost-savings opportunities are to be found in your suppliers’ organizations: knowledge and ideas inside the heads of their managers, engineers, operations and planning staff.

via Negotiating Nugget on Propurchaser.

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 public record.

via FERC: Electric Power Markets – National Overview.

Sustainability Trends

We have picked up a few tips recently from participating in a Conference Board of Canada webinar where sustainability thought leader and governance specialist, Coro Strandberg discussed the drivers and trends of CSR governance and shared emerging best practices in the Canadian context.

We have also been reviewing the Carbon Disclosure Project and other reports to highlight some of the key points that are useful to the supply chain profession.

Read the rest of Sustainability Trends » » »

Beating the Budget Blues

Most Purchasers are called upon each year to prepare a budget for the products they buy. Given the uncertain marketplace, estimating Suppliers‘ prices is a tough job. It’ easy to go wrong, easy to make decisions you’ll come to regret.

Ths article will help you survive & thrive in this career minefield.

via Beating the Budget Blues on Propurchaser.

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.

via Create a tag-team to wrestle cost down on Propurchaser.