One of my favourites strategy with suppliers on cost saving is to find proactive suppliers who knew what need to be done to ensure a win-win formula instead of just passing cost increase to thier customers.
Method of indentifying such supplier is not very difficult but need careful analysis and key pointer would be as following:-
a) when discussing business opportunity, throw to them issues on price trend and how they could help and by thier answers, we can gauge thier attitude toward such matter. a proactive supplier which will assist thier customer to overcome issue on price increase is to counterpropose solution on design or alternative materials which can be considered for the material supplies.
b) have a R n D department and has work closely with customers on projects. such companies will have a open minded concept and good knowledge on overcoming this issue
c) a efficient control system in place in term of thier own procurement excercises, production and quality control. such supplier more often then not control thier cost very well to ensure optimisation of cost and these will be the supplier to look for.
Normally during audit and pre business development checks via discussion, one of your aim should be catered to these pointers before making a decision.
I will try to share more of my own experiences via practical approach to cost saving solutions.
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