Supercharge Savings by Getting Closer to Suppliers

Additionally, many procurement systems can’t deliver basic information on what each supplier provides. Because some suppliers provide goods in many categories, it’s difficult to determine the full extent of possible cost-reducing opportunities. [...]most companies can’t manage their suppliers satisf...

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Bibliographic Details
Published inBCG Insights
Main Authors Jordan, Harald, Mori, Nino, Schnellbächer, Wolfgang, Schuh, Christian, Triplat, Alenka, Weise, Daniel
Format Web Resource
LanguageEnglish
Published Boston Boston Consulting Group Boston, MA 05.11.2019
Subjects
Commodities
Corporate profits
Cost control
Cost reduction
Executives
Managers
Product development
Profitability
Purchase orders
Purchasing
Suppliers
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Summary:Additionally, many procurement systems can’t deliver basic information on what each supplier provides. Because some suppliers provide goods in many categories, it’s difficult to determine the full extent of possible cost-reducing opportunities. [...]most companies can’t manage their suppliers satisfactorily. [...]the approach puts the supplier’s commitment to savings before the time-consuming analyses, preparations, negotiations, and implementation. [...]the approach challenges a commonly held supplier perception that procurement is a zero-sum activity in which the buyer aims to improve profits at the supplier’s expense.