|
|
| Information |
|
|
Suppliers as Your Partners in Cost Reduction
This article is one of the many articles still to come in which I will discuss very basic yet proven techniques that you could use immediately in your encounters with your suppliers. Oh but wait, to find any value in this article, you must be a firm believer that Purchasing strategies have evolved from just 1) focusing on price and 2) focusing on quality, reliability, responsiveness and total cost to a much broader focus of building supplier relationships. Did you know that for each $1.00 you save in your "total cost of ownership" reduction efforts, you will improve your bottom line profitability by $1.00? And did you also know that most companies do not get this concept and continue focusing their resources in all the wrong places? Now is the time when I want to share with you 4 basic rules that have proven to work and work very well to help you create the partnership relationship with your supplier and allow them to equally benefit from the experience as well. Rule #1: Getting direct cost savings is really a thing in the past. Getting savings has become increasingly difficult to achieve as your suppliers face similar predicaments themselves and operate with very little room in their margins to wiggle. Rule #2: To affect your bottom line, using 80/20 rule, work on reasonable incentives to approach your top 20 suppliers with and build a "preferred" supplier base. Rule #3: Communicate to your suppliers on "how to" earn a "preferred" supplier status and what is required of them to remain a "preferred" supplier. Rule #4: Tell your suppliers what's in it for them (WIIFT) as they partner with you and build a "preferred" relationship. To earn a "preferred" status means that your supplier will have the first shot to quote on new business, parts and project. In fact you can go so far as to create "earn a point" program every time you achieve your cost reduction goals using these techniques as they apply to your business. Supplier earns a previously agreed upon point(s) when: 1) Shared tooling costs or shared engineering costs on a project 2) Extended terms: 60 or 90 day billing terms for a period of one year 3) Certified as "ship to stock" on all supplied parts or assemblies for a period of one year and remain compliant for every year thereafter 4) Ship zero defects for a period of one year and continue as such for every year thereafter 5) Work with purchasing, manufacturing or engineering to add value Working with your suppliers to explore these techniques not only presents opportunities for you to reduce your "total cost of ownership" but also helps your suppliers to review, improve and streamline their processes and grow internally to be able to meet your expectations and earn that "preferred" supplier status. Use this "total supply chain cost" model as your guide to isolate and focus on the actual cost elements impacting your bottom line profitability. Total supply chain cost= Buying price= +Supplier performance cost +Cost of acquisition +Out-of-sync planning -Speculation returns +Speculation cost +Mfg. cost +Selling cost +Distribution cost +Profit =Selling price Vera Haitayan, Principal Consultant of The Leadership Laboratory., a California-based employee development and process improvement consulting firm and is the senior editor of The Stepping Stone Newsletter featuring leadership and process improvement best practices.http://www.1leadershiplab.commailto: vera@1leadershiplab.com
Latest News:Site: Yahoo! News Search Results for news Myanmar's Suu Kyi to get family letters, news mags (Reuters via Yahoo! News) Detained Myanmar opposition leader Aung San Suu Kyi has managed to wring small concessions from the ruling generals in the form of letters from her family and some international news magazines, her lawyer said on Friday. SEC Looks Into UAL Stock Scare; Implications For Online News? (CBS News) A ton of digits have been devoted to this in other spots but the SEC's decision to investigate takes it to another level. The backstory: a six-year-old news story about UAL declaring bankruptcy made it into the Tribune-owned Sun-Sentinel 's current news flow, was picked up by a Google (NSDQ: GOOG) News bot and, via a reporter for a newsletter, made it onto Bloomberg News. After a lot of buck ... JCDecaux in talks for News Outdoor Group in Russia (AP via Yahoo! News) French outdoor advertising firm JCDecaux SA said Thursday it is negotiating to buy Russian rival News Outdoor Group from global media company News Corp. News Corp tightens grip on Premiere with new CEO (Reuters via Yahoo! News) Rupert Murdoch tightened his grip on German pay-TV broadcaster Premiere by appointing News Corp executive Mark Williams as CEO in a move to get the company back on track. Phila. mayor to announce grim budget news (The Philadelphia Inquirer) The Nutter administration is expected to announce grim budget news today, which is all but certain to lead to significant spending cuts - perhaps as high as 10 percent - in some city departments, according to three sources familiar with the budget. Help News pick Stadium's greatest moment (New York Daily News) The News is marking the countdown to the final game at The House That Ruth Built by reflecting on Yankee Stadium's greatest moments - and we're asking you - the reader - to help us pick out the best of the best. JCDecaux and News Corp. in talks to combine outdoor ad groups (International Herald Tribune) The News Corp. chief executive, Rupert Murdoch, has recently expressed nervousness about investments in Russia, where News Outdoor generated the bulk of its revenue last year. SEC Looks Into UAL Stock Scare; Implications For Online News? (paidContent.org via Yahoo! Finance) A ton of digits have been devoted to this in other spots but the SEC's decision to investigate takes it to another level. The backstory: a six-year-old news story about UAL declaring bankruptcy made it into the Tribune-owned Sun-Sentinel's current news flow, was picked up by a Google News bot and, via a reporter for a newsletter, made it onto Bloomberg News. JCDecaux in talks to buy News Corp. billboard unit (AP via Yahoo! Finance) In a deal that would create the world's largest outdoor advertising company, French conglomerate JCDecaux SA said Thursday that it is in talks to buy Russian rival News Outdoor Group from global media company News Corp. News Corp says Mark Williams interim Premiere CEO (Reuters via Yahoo! News) News Corp. executive Mark Williams has taken over as chief executive of German pay-TV broadcaster Premiere in an interim capacity, News Corp. said after the move led to renewed takeover speculation. Site: news - Google News Staunton News Leader lays off 10, cuts 5 positions - CNNMoney.com
MORE RESOURCES: Site: Yahoo! News Search Results for negotiation Report: Israeli official says Jerusalem not on negotiation table (People's Daily) The future status of Jerusalem is not on the negotiation table between Israel and the Palestinians, local daily Ha'aretz quoted an Israeli official as saying Thursday. Earlier Thursday, Jack Walles, head of the American consulate in Jerusalem, was quoted by a Palestinian newspaper as saying that Israel has agreed to discuss the question of the holy city in the peace talks with the Palestinian ... AM Topic: Salary Negotiation (AskMen) When you're trying to secure a new position in your career, salary negotiation is often considered one of the trickiest steps -- it's also one of the most important. You don't want to turn off your potential employers and make them rescind their offer. Hostage/Crisis Negotiation Training Seminar at ECU (The Daily Ardmoreite) A three-day Hostage/Crisis Negotiation Training Seminar will be offered in Ada Sept. 26-28 by East Central University?s Tribal Police Training Program, ECU?s Psychology Department and the Council on Law Enforcement Education and Training. Wednesday is the last day to register. Philex says in negotiation for sale of shares (GMA News) MANILA, Philippines - Philex Mining Corp., the country's largest miner, on Friday disclosed that it is negotiating with foreign investors for the sale of shares that it acquired from a buy back program. Updated 9/11: Get facts, leave feedback on District 158 negotiation Web site (Algonquin Countryside) The public is invited to ask questions and leave comments about School District 158's ongoing teachers contract negotiations on a news and information Web site. Nuke negotiators hold breath on North Korea's situation (Asia News Network) As focus remained on the health of North Korean leader Kim Jong-il who reportedly suffered a stroke last month, Washington and Seoul yesterday (September 11) tuned into what effects it could have on the stalemated nuclear negotiation and strained inter-Korean relations. Latest Additions (The Barnstable Patriot) After months of negotiation the Cape Cod Baseball League and Major League Baseball Properties (MLBP) have reached an agreement that allows the CCBL to continue its use of trademarks of Major League Baseball teams, including the Hyannis Mets. Why real estate deals fall through (Newsday) Faulty Paperwork, failed home inspection, and bad credit are just some of the issues that can kill a successful negotiation. Serial Counterfeiter Arrested (Garden City News) Garden City Police announce the arrest of a serial counterfeiter who received a five-figure check for a fake Patek Philippe which he sold. Ian K. Kosloff, 31 walked into H.L. Gross & Brothers on Franklin Avenue on Aug. 6 to sell a watch he said was worth $20,000. After some negotiation, a jeweler wrote him a check for $12,500 in exchange for the stainless steel watch. Fitch Rates NCMC's (Colorado) $55.5MM Revs 'A+'; Outlook Stable (Centre Daily Times) Fitch Ratings has assigned an 'A+' underlying rating to the Colorado Health Facilities Authority's approximately $55.5 million hospital revenue bonds (NCMC, Inc. Project) series 2008A&B. The 2008A&B bonds are expected to sell via negotiation during the week of Oct. 14 and will be issued as variable-rate demand bonds backed by a letter of credit. In addition, Fitch has affirmed the underlying ... Site: negotiation - Google News Auto CEOs Aren't Making Their Case - Wall Street Journal
|
|
|
|
RELATED ARTICLES
Games are a Reflection of Behavior You are standing on a small stage yelling, "What's the name of the game?!""Win as much as you can!!!" comes roaring back."Who's responsible for your score?!""I am!!"The audience is composed of ninety men, all prisoners in a federal maximum security prison. Power Pricing - Getting the Right Price for Your Products and Services There's an old joke about the New York City blackout. Power was out everywhere, and the electric company couldn't figure out what was wrong or how to fix it. Writing an RFP (Request for Proposal) A while back, a potential client provided me with some general details of the writing work he wanted me to do for his company. Then he asked me to send him a proposal. Negotiations: The Art, Science, & Sport of Online Deals Negotiations can seem as complex as physics, and in fact, people go to college to study the science of negotiating just as they would the laws of nature. At the same time, negotiation is like an ancient art form, some sort of Zen mental jujitsu. Negotiate to Your Advantage The hardest and most important part of any negotiation is knowing when to walk away.Few things are sweeter than a successful negotiation session where both parties leave the table with a winning solution. Barter: Its Not Just for Doctors Anymore Time was, in the country, the local "doc" was as likely to get paid with a couple of chickens as a couple of dollars. Doctors these days won't stand for that, of course, but while some people have moved completely away from barter and stayed there, others have embraced it wholeheartedly. Managing the Sales Negotiation Process How many times have you heard:"You've got to drop your price by 10% or we will have no choice but to go with your competition.""You will have to make an exception to your policy if you want our business. Four Ways To Work Out Business Disputes Business owners have four options to resolve disputes with partners, vendors or customers. Each option is based on different assumptions, and entails a different cost. How To Communicate Using Space What Is Proxemics?The study of the communicative aspects of personal space and territory is called proxemics. Everyone is surrounded by an invisible zone of psychological comfort that follows us everywhere we travel. Negotiating Tactics: Don't Let 'Good Guy - Bad Guy' Control the Sales Negotiation Counter one of the classic negotiating gambits by addressing it directly.You've assembled a brilliant sales proposal for a new client and when you arrive to the meeting to hammer out the final details, you suddenly find yourself sitting across the table negotiating with two people. The Art of Negotiation in 535 words I want to get better at negotiation, but where to start? UK Amazon currently has 2332 books on negotiation. Google indexed nearly 4 million relevant (yeah right) pages. Managing Conflict, in Life & Work: Using Ancient and Modern Approaches "Conflict" is a word that can have varying degrees of severity, meaning, and implication for each individual or circumstance. For example, the conflict that is experienced in our current, daily lives seems insignificant in comparison to the Samurai, or those in war, who faced death on a regular basis. Negotiating Tactics: How To Strike A Negotiable Opening Shot There is no right or wrong to fire up your opening negotiation.. The Art of Haggling Did you know that at one time in this country that there were no fixed prices on anything. You would go into a store and find an item you needed then you would begin the process of negotiating the price. Negotiate Your Way to a Better Salary 1. Be persuasive: It's hard to force your boss to increase your compensation, and trying to do so can potentially damage your working relationship. National and Cultural Negotiation Style Cultural and national negotiation styles reflect communication behaviors and the priorities of that culture. Priorities such as trust, teamwork, non-confrontational situations, and openness are all along a sliding scale with each culture. Negotiating: Forcing vs Compromising Forcing is a hard-nosed approach that makes heavy demands from the outset. Emotions are displayed frequently, few concessions are made, and the bottom line may be concealed. Win-Win Power Negotiating Let's talk about win-win negotiating. Instead of trying to dominate the other person and trick him into doing things he wouldn't normally do, I believe that you should work with the other person to work out your problems and develop a solution with which both of you can win. Making the Deal: Women as Negotiators Negotiating is no game. It is not for the weak or the fragile. Avoiding and Accomodating in Negotiation The avoiding approach to negotiating is characterized by losing, leaving, and withdrawing. No commitments are made, and behavior is impersonal.
|
| Home | Site Map | Resource Links |
