Today’s Post is by Patrick Quinn a Procurement Specialist at SafeSourcing Inc.
You, yes you, have a supplier that is screwing you over. The problem is you do not know which one it is. Inflation is hitting your books, and you have spent countless hours going over your spreadsheets to find out how your business is going to pay its bills. You could risk upsetting your clients and customers by trying to subtly increase your prices, but with the news tickers of rising prices flashing everywhere, more people now than ever are watching out for the latest price increases, and you could lose more business than you keep by doing so.
But what about the side of the business where you are the customer? You may think you have negotiated the best deals, found the highest quality suppliers for the lowest price when negotiation is not worth the time, and introduced cost saving tactics when even comparative shopping does not seem worth it, but how can your team alone possibly account for every penny-pinching method within the work week? The answers are often hidden right at the top end of your accounts payable sheet.
During times of inflation, your suppliers can increase prices without your complaint because they expect you to see cost increases. Inflation hit 8.5% so your costs increased. But, by how much exactly? And how much time will it take for you to find out which suppliers increased costs more than 8.5%? Stare at the spreadsheets long enough, and you will begin to wonder, is the 8.5% inflation rate real in any way? Or is it that way because your suppliers took advantage of your pre-conceived ideas?
I cannot tell you how many times I have heard incumbent suppliers tell our customers that they cannot lower their prices. And almost as many times, prices are adjusted to meet the competition. Competing suppliers in your industry want you to spend money with them just as much as your current supplier wants to keep you. Your current supplier has just had a seat at your table more often than anyone else. eRFQ tools ensure that your supplier knows that you also know that there are always more options out there. And if you let someone search hard enough for you, you will find a new supplier eager to impress you just as much as your current supplier did when they first made their way into your spreadsheets.
To help you find the source of your rising costs, please contact a SafeSourcing Customer Service Representative.