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Last updated on 2024年9月4日

You're facing rising supply chain costs. How can you negotiate with suppliers to maintain quality standards?

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In the world of manufacturing engineering, rising supply chain costs pose a significant challenge. You're tasked with maintaining quality standards while also managing these increasing expenses. Negotiating with suppliers becomes a critical skill to ensure that your production lines keep moving without compromising the integrity of your products. Understanding the nuances of these negotiations and applying strategic approaches can lead to successful outcomes that benefit both your company and your suppliers.

本文章的要点总结

Deep dive into costs:

Break down every cost component to identify high-expense areas. This knowledge allows you to propose cost-saving measures like bulk purchasing without sacrificing quality.### *Long-term commitments:Offer suppliers longer contracts for better pricing and priority production slots. This secures stable supply chains and encourages suppliers to invest in process improvements.

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Andy Howard

Procurement and Supply Chain support
Usman Habib

General Manager Business Operations |…

1 Understand Costs

To negotiate effectively, you must first thoroughly understand the costs involved in your supply chain. This means breaking down the price of each component or material and identifying which aspects are contributing most to the rise in expenses. Are there particular raw materials that have become more expensive, or is it a question of logistics and transportation? With this insight, you can approach suppliers with informed questions and suggestions for cost-saving measures that don't sacrifice quality, such as bulk purchasing or alternative shipping methods.

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Andy Howard

Procurement and Supply Chain support
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The need to understand costs, is very much dependant on the item in question and the market it sits in (kraljic model), eg leverage based items with many suppliers can be covered by straight negotiation. Understanding their cost make up can be helpful, but these suppliers tend to want your business, and tend to offer a better price to win. For more strategic based items, being in a position to break down the material and labour costs is key to success. Sometimes using your own costs as a base for your calculations is a good option to use. Undertaking a deep dive throughout the product supply chain is also an excellent way to obtain a detailed understanding of cost make up and identify those area you can concentrate your negotiations on.

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Usman Habib

General Manager Business Operations | Head of Sales & Business Operations | FMCG | Consumer | E-commerce |Telecommunication | Technology | Logistics & Distributions | Travel industry | Aviation
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Optimizing manufacturing processes requires a critical evaluation of various factors to ensure efficiency and cost-effectiveness. By analyzing the manufacturing processes, raw materials, energy efficiency of equipment, manpower expertise, packing methods, and logistics costs, businesses can identify opportunities to streamline operations. Exploring alternative materials without compromising quality is essential for reducing costs. Implementing these measures can lead to a leaner, more efficient production process that enhances overall profitability

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HOMAEER WAHEED

DIRECTOR OPERATIONS ORIENT GROUP OF COMPANIES
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You should critically evaluate the following at supplies end 1. Manufacturing Processes 2. Raw materials used in making a particular component 3. Energy efficiency of equipment used in manufacturing 4. Training level and expertise of manpower involved in manufacturing. 5. Packing methods and cost 6.Logistic costs involved. By deeply analysing each of the above an effort should be to optimise all the business processes by making them lean. Use of alternate cost effective materials should be considered, without compromising the over all product/component quality. Taking above measures can help reduce cost

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Steaphen Sigatapu

Rocket Scientist at ISRO I Aerospace Engineer I Space Enthusiast
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The following ways can be implemented for negotiation during rise in supply chain costs. 1. Offering long term partnerships 2. Verification of cost for value added services 3. Identification of alternate source of supply 4. Addition of quality assurance clauses 5. Carrying out thorough research on market costs By adopting the above strategies, one can navigate through cost pressures while ensuring supply of high quality products.

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Syed Faisal Ahmed

Technical Sales Assistant Manager @ AAF Saudi Arabia Ltd. MBA Mechanical Engineer IAQ/Sales
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To negotiate effectively, you must first thoroughly understand the costs involved in your supply chain. This means breaking down the price of each component or material and identifying which aspects are contributing most to the rise in expenses. Are there particular raw materials that have become more expensive, or is it a question of logistics and transportation? With this insight, you can approach suppliers with informed questions and suggestions for cost-saving measures that don't sacrifice quality, such as bulk purchasing or alternative shipping methods.

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2 Build Relationships

Strong relationships with suppliers are invaluable when negotiating costs. By fostering mutual trust and respect, you create a foundation for open communication and collaboration. Take the time to understand their challenges and constraints. This understanding can lead to more empathetic negotiations where you work together to find solutions that address both parties' needs. A supplier who values your business relationship may be more willing to negotiate on price if they believe it will lead to long-term stability for both sides.

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Alejandro Escobar Valencia

Gerente de Producción
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Si bien es cierto que es muy importante afianzar las relaciones, comerciales, técnicas, logísticas y todas las necesarias para garantizar el suministro de materias primas, servicios e insumos, hay que tener mucho cuidado con que estas relaciones se conviertan en dependencias que suelen en ocasiones poner de rodillas a la empresa frente al proveedor. En la medida que el mercado y las condiciones lo permitan, es ideal desarrollar varios proveedores que cumplan todos con las condiciones de la empresa y que permitan minimizar o eliminar la dependencia de un único proveedor. En caso que el elemento a adquirir sea suministrado por un solo proveedor, el manejo ya no sólo dependerá de unas buenas relaciones sino también económico y logístico.

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Macrofilter / Filtros y Mallas de Puebla

Gerencia de ventas y atención a clientes/ Fabricante de filtros industriales en México
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Las relaciones sólidas con los proveedores son invaluables para negociar costos. Facilitan la obtención de mejores condiciones comerciales, como precios competitivos y acuerdos estables. Además, un proveedor que se siente valorado es más propenso a ofrecer apoyo adicional y priorizar tus necesidades. La colaboración y la comunicación constante también ayudan a reducir costos y mejorar la eficiencia.

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3 Leverage Volume

One of the most effective negotiation tactics is leveraging your purchasing volume. If you're a significant buyer, suppliers are often willing to discuss discounts or more favorable terms. Highlight your order history and future procurement plans to demonstrate your value as a customer. In return, you may be able to secure bulk pricing or longer payment terms, which can help alleviate some of the financial pressure from rising supply chain costs while maintaining the desired quality standards.

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Macrofilter / Filtros y Mallas de Puebla

Gerencia de ventas y atención a clientes/ Fabricante de filtros industriales en México
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Para mejorar tus precios de compra y aprovechar el volumen: 1. **Consolidar pedidos**: Agrupa compras para obtener descuentos por volumen. 2. **Negociar contratos a largo plazo**: Ofrece estabilidad a cambio de mejores precios. 3. **Comparar proveedores**: Evalúa diferentes opciones para encontrar la mejor oferta. 4. **Establecer relaciones sólidas**: Fomenta la colaboración y la confianza. 5. **Optimizar inventarios**: Reduce costos de almacenamiento y evita compras innecesarias.

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Anand Peter

Purchasing/Procurement
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One of the most effective negotiation tactics is leveraging your purchasing volume. If you're a significant buyer, suppliers are often willing to discuss discounts or more favorable terms. Highlight your order history and future procurement plans to demonstrate your value as a customer. In return, you may be able to secure bulk pricing or longer payment terms, which can help alleviate some of the financial pressure from rising supply chain costs while maintaining the desired quality standards.

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4 Offer Commitment

Consider offering longer-term contracts to your suppliers as a negotiation tool. A commitment to a longer partnership can be very appealing, as it provides the supplier with predictable business and cash flow. In exchange, you might negotiate better pricing or priority production slots, ensuring that your supply chain remains robust even during periods of high demand or material scarcity. This tactic can also encourage suppliers to invest in process improvements that benefit both parties.

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Macrofilter / Filtros y Mallas de Puebla

Gerencia de ventas y atención a clientes/ Fabricante de filtros industriales en México
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Ofrecer contratos a largo plazo a los proveedores tiene varios beneficios: Reducción de costos: Los acuerdos a largo plazo pueden asegurar precios más bajos y estables. Mejora continua: Facilita la colaboración en iniciativas de mejora y eficiencia. Estabilidad: Proporciona previsibilidad financiera y operativa. Innovación: Fomenta la innovación conjunta y el desarrollo de nuevos productos. Relaciones sólidas: Fortalece la confianza y la cooperación mutua.

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Michael Darbyshire

CNC Programming | Aerospace & Defense
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It’s typically better to keep some supplier diversity, even if you’ve consolidated some commodities down to a few vendors. Keeping a foot in the door elsewhere, giving yourself the flexibility of buying outside of your LTA’s, is important, especially when prices are rising somewhere in the chain. If you notice your favorite supplier is the only one raising prices to a concerning level, don’t jump into a LTA until you can confirm the increases are market changes and not a sign of volatility with that supplier. You could end up locking in on a company during bad times or worse, and face quality and availability problems even with locked-in pricing.

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5 Explore Alternatives

Sometimes, the best way to manage rising costs is to explore alternative suppliers or materials that meet your quality standards but come at a lower price point. Conduct thorough market research to identify potential new partners or substitute materials that could offer cost savings. Presenting this research to your current suppliers could prompt them to reconsider their pricing or offer additional value-added services to retain your business.

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Ian Estinozo II

Senior Manager - Supply Chain Engineering
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Exploring alternatives should be deliberate and what works from my experience is having a dedicated Market Intelligence project team that have regular data gathering and insights generation to come up with ideas that can be turned into projects.

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Alex Ferraz Silva

Mecanico Manuten??o
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Conhecer novos produtos com novas tecnologias Diversificando a gama de fornecedores e materiais Sair dos fornecedores habituais e buscar sempre a melhoria continua

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Macrofilter / Filtros y Mallas de Puebla

Gerencia de ventas y atención a clientes/ Fabricante de filtros industriales en México
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Explorar proveedores o materiales alternativos es una estrategia efectiva para mejorar tu posición de compra. Diversificar proveedores puede reducir riesgos y asegurar la continuidad del suministro. Además, comparar opciones permite negociar mejores precios y condiciones. Evaluar materiales alternativos puede reducir costos y mejorar la calidad3. Esta flexibilidad también fomenta la innovación y la mejora continua.

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6 Continuous Improvement

Finally, embrace the principle of continuous improvement in your negotiations. This isn't just about reducing costs once but about creating a dynamic where both you and your suppliers are constantly looking for efficiencies and innovations. Suggest regular review meetings to discuss performance and opportunities for further cost savings or quality enhancements. This proactive approach can lead to incremental changes that add up to significant improvements over time.

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You're facing rising supply chain costs. How can you negotiate with suppliers to maintain quality standards?

1

2

3

4

5

6

1 Understand Costs

2 Build Relationships

3 Leverage Volume

4 Offer Commitment

5 Explore Alternatives

6 Continuous Improvement

Manufacturing Engineering

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You're facing rising supply chain costs. How can you negotiate with suppliers to maintain quality standards?

1

2

3

4

5

6

1 Understand Costs

2 Build Relationships

3 Leverage Volume

4 Offer Commitment

5 Explore Alternatives

6 Continuous Improvement

Manufacturing Engineering

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感谢您的反馈

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