Here's how you can showcase your knack for spotting cost-saving chances in a supplier sourcing interview.

Identify the processes which the supplier is currently using . Next map a value stream using current processes. Scrutinise and remove non value added processes . Then create a new value stream mapping from the improved processes. Cost savings opportunities can be identified by eliminating non value addedd processes.

Supplier expertise and maturity in their industry can significantly save money for the procurement department by ensuring higher quality and more reliable products, which reduce the costs associated with defects and replacements. Experienced suppliers often provide better pricing through economies of scale and established relationships with their own vendors. Their industry knowledge can also streamline procurement processes and introduce innovative solutions, further cutting operational costs. Lastly, mature suppliers offer more stable and predictable supply chains, minimizing the financial risks of delays and shortages.

Según mi experiencia, es fundamental analizar detenidamente cada ítems del costo de un producto. Sobre todo en un país como Argentina, ya que con una moneda tan inestable cualquier cambio es crucial.Además, entender los costos ayuda a identificar áreas donde se pueden reducir gastos y mejorar la eficiencia para maximizar la rentabilidad de producto.

Understanding costs in supplier sourcing is not just about the initial price tag. It's crucial to consider the entire lifecycle of the product or service, including maintenance, replacement, and disposal costs. As an expert, I often use tools like cost-benefit analysis and total cost of ownership models to uncover hidden expenses and evaluate the long-term financial impact of sourcing decisions. This holistic approach can lead to significant cost savings and a more sustainable supply chain.

Quantify Savings: Present specific examples where you identified and implemented cost-saving opportunities, including the monetary impact. Strategic Sourcing: Describe your approach to evaluating suppliers, negotiating contracts, and leveraging volume discounts or long-term partnerships for better rates. Process Improvements: Share instances where you optimized sourcing processes or utilized technology to reduce costs. Risk Management: Highlight how you've mitigated risks by diversifying the supplier base or implementing contingency plans, leading to cost savings. Innovation: Discuss innovative sourcing strategies you’ve adopted, such as exploring alternate materials or markets, to achieve cost reductions.

Benchmarking is mandatory as it allows to know the main / new suppliers for each commodity, but also to discover the current trends or technologies. Good ways to stay up to date can be to attend exhibitions, read specialized newspaper and also joining online networks on social media where anyone can communicate. Lastly, talking with colleagues or current suppliers always brings up interesting discussion and ideas that can be valuable!

A la hora de seleccionar proveedores, es importante la comprensión del mercado. Esto nos ayuda a lograr la habilidad de negociar mejores términos, como precios, plazos de entrega y sobre todo calidad. En mi experiencia el valor agregado que me parece fundamental es trabajar con proveedores locales, con la industria nacional. Quizás esto parece contradictorio, porque en general a veces necesitamos de lo importado. Pero apostar a lo nacional suma y en mi caso totalmente personal considero que es atribuir a nuestro país.

Strong supplier relationships produce familiarity and synergy with a brand/ product goals, requirements, needs. This understanding, if properly utilized, can drive continuous improvement which increases efficiency, leading to cost improvement. It also fosters innovation in process, materials, and product that also supports better costing. And finally, the synergy can lead to increased speed in development and production. Time is money, and speed is the secret sauce in any great supplier sourcing relationship.

In addition to fostering relationships with suppliers, consider highlighting your efforts in building internal relationships across departments. Showcase how your collaborations with colleagues in finance, logistics, and production have led to cost saving discoveries. For instance, as an engineer, I facilitated regular cross departmental meetings to align on cost saving goals. Through open communication and sharing insights from supplier interactions, we identified areas for joint optimization, such as streamlining processes and consolidating orders, resulting in significant cost reductions across the board.

Según mi experiencia lograr una relación fluida con los proveedores es fundamental para nuestra organización. Involucrar a cada uno de ellos es los procesos de producción, es importante, ya que de este modo saben que tan clave es su insumo para la empresa.

A good negotiation always depends on your own objectives. If it is common to say that suppliers aim to maximize their profit and limit their risks. As a buyer you might look for the best overall prices (TCO), the greatest sustainability criterias, accessing new technologies, developing supplier portfolio... As a general rule, we can consider that competition is a must in every negotiation, more over communicating from the beginning our objective can maximize the positive outcome.

La partie la plus importante de la négociation, c’est la préparation. Se préparer en amont, en analysant les offres (décomposer les co?ts), le contexte du besoin et la situation du fournisseur, peut aider à faire des économies.

It's always mandatory to perform a correct risk analysis before finalizing a sourcing. According to its importance and complexity, many factors such as market trends, geopolitical situation or future dependency are to be clearly understood and mapped. Neglecting a risk analysis can result in a painful situation and eventually block the complete supply chain.

In addition to the listed strategies, emphasize your proactive approach to sustainability. Showcase how you identify suppliers who align with eco-friendly practices, thus reducing long term costs and enhancing brand reputation. As an engineer, I once proposed sourcing raw materials from suppliers with renewable energy initiatives. Not only did this align with our cost saving goals, but it also positioned our company as environmentally responsible, appealing to both stakeholders and consumers.

In my experience there are intangibles and intangibles to consider. First, mistakes happen, how well/poorly a supplier takes corrective and preventive action reflects commitment to relationship building. Next, payment to suppliers is critical, buyers be on time with payment, don’t make a supplier struggle financially. Finally, sometimes (exception) lead time gets in the way: a part/service is needed before a PO can be issued. A solid relationship is created when both buyer and supplier have enough trust in each other to take action and then clean up the paperwork. Reasonable people can always find reasonable solutions. My favorite suppliers have a knack for offering alternative solutions.