Day 1: May 4, 2020 Procurement Transformation For A 2020 Economy
Tuesday, January 1st, 2019
Negotiations can be taken to the next level by having internal cost engineers double-check detailed cost breakdown sheets provided by suppliers – as well as physically breaking down and evaluating the origin and costs of every component. This creates value on both sides, as suppliers find where they can improve while the procuring organization gets a better margin.
•Compare international averages, R&D, labor and machining costs, etc., to get a more precise view of supplier profits
•Build or adapt a database for uploading cost breakdowns
•Improve transparency and negotiation potential even with sole-source suppliers