You're sourcing critical product components. How do you secure the best pricing from external vendors?

Critical components are like rock-stars - you don't focus on pricing, focus on relationship. Without it, you do not have access or price. Alternatively, change course and innovate if your situation has cashflow behind it.

While traditional sourcing tactics remain essential, a holistic approach is imperative for optimal pricing. Blending market research, volume commitments, and long-term partnerships can yield significant cost reductions. As a Product Development Consultant & Owner of AI based Mobile & Web App Dev Agency, I would say by combining human expertise with intelligent algorithms, businesses can uncover innovative solutions, optimize supply chains, and ultimately achieve a competitive edge.

Volume is always a very good factor for price negotiations, but unfortunately not all companies make this argument. In my experience, one thing that works well if you don't have that volume is to also present the potential of your company and how you can grow and have a larger volume in the near future.

Suppliers are always looking to create long-term relationships. Everyone wants a promoter client, right? My tip is to pay attention to the benefits that you and your company will receive from this relationship. The beginning of the relationship is important to put all your desires on the table. If you are getting what you want, go ahead and continue with your wish list, if the negotiation gets stuck you have to show the future benefits of your relationship.

On my journey I met few suppliers that helped companies achieve savings that would lead to a reduction in their own services. But most of them are willing to provide more economical solutions than the solutions you already have, especially with other suppliers. It is very worth revisiting your customer journeys or internal processes in order to reduce costs together with these suppliers and, above all, demanding more from them.

Never negotiate for bargains or exclusively for your own benefit. You are establishing a relationship with your suppliers, so you need to look for something very healthy and that also meets your needs with excellence. I suggest that you always look for a "Possible Agreement Zone" that leaves you both satisfied and that addresses most of your wish list.

Qualificar fornecedores é um processo de extrema importancia desde o início do desenvolvimento de produtos. Preferencialmente devemos incluir de dois a três fornecedores qualificados para cada insumo, evitando assim o desabastecimento ou aumento repentino de custos. A qualifica??o de fornecedores locais tem ganho espa?o no cenário industrial porque os prazos de entrega para importa??o seguem longos e a oscila??o das moedas estrangeiras também é um ponto a ser considerado. Uma das estratégias adotadas para garantir o fornecimento ideal para a empresa é formalizar o consumo anual em contrato, prática que ainda n?o é adotada pela maioria das empresas. Ou ainda realizar encontros anuais e premiar os fornecedores chave por sua conduta.