While your costs are on the rise, there are steps you can take get back control.
Today’s post is by Dave Wenig, Sr. Vice President of Sales and Services at SafeSourcing.
As a result of a variety of factors, you have probably noticed that costs are increasing. Regardless of whether you are responsible for procurement in your professional life, you can’t help but notice these trends. We’ve been working with our customers on this for about a year as we’ve been watching prices rise continually. We’ve covered that in our blog posts extensively as well such as covering the costs of lumber back in a May 2021 post.
Every day, we hear more from customers about why they feel this is happening in just about every spend category. Commonly cited issues include shipping container delays, labor shortages, and inflation. Each of these is either compounded in some way due to the changes in the economy related to COVID-19.
Unfortunately, we hear from many executives responsible for procurement that they feel they have no control over the rising costs.
Some feel that the rising costs cannot be managed because they don’t want to risk supply chain interruptions as a result of working to negotiate with their current vendors or working to find an alternative source of supply.
Others feel that they don’t have the necessary leverage to negotiate for better prices. Whether that’s because they have their own opinions of the market conditions or they feel that their purchasing power doesn’t offer them enough power in the negotiations, that can be a matter of perspective.
So, what’s a buyer to do?
Check back for tomorrow’s post and we will share some examples of where our customers have decided that they are going to continue to work against these forces and have been managing to find successes with our help despite the ever-rising costs that most are simply accepting.
If you would like more information on how SafeSourcing can help your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.