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A clean desks helps you to get a better deal!

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DN STEWART INFECT07 LITUCHY LD 3Many years ago when I started in my first role as a buyer I was thinking about a lot of things. What kind of suppliers would I have? How would I run my first negotiation? Would I meet all the expectations, my own, of my management and of my colleagues?

With the start of my role I learned that an external audit was about to be conducted in three months after my start. Thus the focus was on identifying all audit issues and to eliminate them. If your predecessor had done a great job and everything was according to plan there shouldn’t be any need to worry. However I had to deal with unpaid invoices going back for years, contracts which were not in line with general procedures and missing documentation. In the end it was the perfect scenario to get lost.

As everybody knows your daily tasks don’t stop just because an audit will take place. You are still expected to run your commodity, source for new projects, monitor the supplier, take care of your budget and cost improvement actions.

The dilemma which you are in is the fact that the suppliers you are approaching to source a new project are also on your list for items as unpaid invoices, missing orders or something else. Thus the supplier will put this on the agenda and use this as an argument for not being in the position to offer you the best deal. It wouldn’t be that bad if you have enough suppliers who have no burning issues and would like to talk to you purely about the upcoming project.

Unfortunately in my case more or less every supplier had open issues which were distracting to the project and cost negotiation. It took months to sort this out and required more than one compromise between the supplier and myself.

The new project which required to be sourced and the price negotiation which had to be completed were still finalized but it took much longer than normally required and the outcome could have been better.

The open issues were perfect arguments for the suppliers to ask for the negotiation and even if you tried to separate them these issues remain on the table.

It is similar to your office desk. You try to focus on your main task but you see all these papers surrounding you which scream for action.

In regards to negotiate the best possible deal with a prospective supplier or to negotiate new prices with your supplier base make sure you have a clean desk:

  • Get your finance department to pay on time
  • Understand any issue in regards to quality and get them sorted out
  • Talk to your management what they have on their mind in regards to certain suppliers
  • Communicate with your suppliers upfront and close out any remaining issue
  • Ask for support from colleagues who may help to close any issue
  • Identify any concern other departments may have with one of your suppliers
  • Have only one subject on the table but the new project
  • Finally: Clean your desk and keep it clean!

Enjoy your clean desk!

Klaus Weghaus

Director

Rhenus Consulting

Klaus Weghaus is an experienced professional who has gained knowledge in international project management and purchasing. He served more than nine years within a big OEM of the automotive industry having various positions within Product Development and Purchasing. Klaus oversees the creative direction at Rhenus Consulting as well as business development. As a marathon runner he will ensure that he does a marathon for you if this is required.


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