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Managing Indirect Spend: Enhancing Profitability Through Strategic Sourcing by William R. Dorn, Joe Payne

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CHAPTER FOURTEEN

Leveraging Supplier Feedback

NUMEROUS FACTORS PLAY A PART in executing a successful sourcing event and ultimately reducing costs. As we discussed in previous chapters, many of the components focus specifically on equipping yourself with market data and a good team in order to effectively negotiate lower costs with suppliers. However, as we have discussed, becoming the perfect customer is another atypical method of optimizing cost savings. By understanding what the supplier’s wants and needs are, and demonstrating you can meet those requirements, you can often motivate the supplier to provide pricing or enhanced services that might not otherwise be available.

In this chapter we illustrate several examples of projects in which we were able to leverage supplier feedback to build a business case for why we were the perfect customer. In doing so, we were able to convince the suppliers that they did not just want our business, but in fact needed it.

AVOIDING THE RFP PROCESS

As we have previously discussed, avoiding the RFP process altogether is one technique for becoming the perfect customer, because it actually has the ability to build confidence in your suppliers, as they believe you are working in a collaborative environment and that you represent a serious opportunity.

Recently many suppliers, particularly in the services industry, have been walking away from many RFPs and potential new business opportunities if they conclude that they do not have a good chance ...

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