There are at least three reasons why these rough economic times are great for sourcing professionals.
- With declining revenues, companies are looking to reduce costs to preserve profit margins. And which department specializes in reducing costs? Sourcing, of course!
- The weak global economy is a fine reason to ask a supplier to restructure a deal. If your organization must reduce costs in order to survive, there is no shame in asking your existing suppliers for price reductions. Many of them will recognize that your organization’s survival means continued business – perhaps even survival – for them. That makes win-win negotiation – and maintaining supplier performance – even easier.
- For many individuals, price reduction discussions are sometimes uncomfortable to start with long-time suppliers. But commodity prices have fallen. If you’ve ever felt that you need some type of ammunition to start a price reduction discussion, guess what? You have it!