Negotiating Techniques for Construction Procurement

SIPMM Professional Publications

As a professional purchaser, negotiation skills will place one at an upper hand. Besides interacting closely with the suppliers for various deals, apurchaser has to negotiate effectively with potential suppliers to get the required goods at favourable pricing, within a given working budget.

Now or Never: Why Supply Chain Sustainability is Non-Negotiable in 2022

Locus

Transportation was redirected to be used in providing first aid, leading to supply chain bottlenecks, shortages and price hikes. Businesses evaluate their supplier relationships and partner with only businesses that are dedicated to the human, animal, and environmental wellness.

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Why Companies Need a Supplier Relationship Management Strategy

GlobalTranz

While the opportunities are numerous so are the challenges; in this fiercely competitive global marketplace success requires companies to pay closer attention to supplier relations. Global leaders should retain suppliers with vested interest in the long-term success of the company. To attain this level of trust with suppliers, companies should approach these relationships with the same care they use when approaching customers. Supply Chain supplier relationship management

Procurement & Suppliers: Paying Attention to Terms & Conditions to Keep Supplier Relations Postitive

GlobalTranz

Editor's Note: Today's blog is by our great friend, Chuck Intrieri where he gives us a fantastic example of how Procurement and Suppliers can enhance Supplier Relations by navigating the "Battle of the Forms.". In the real world, it can lead to delays and confusion, and, in the worst cases, prolonged and protracted litigation, resulting in bad supplier relations. Naturally, a supplier relations conflict exists. Contract Negotiation Enhancing Supplier Relations.

Tesla Asks Suppliers for Refunds to Help Profit

Material Handling and Logistics

asked some suppliers to return a portion of its payments to them in an attempt by the electric-car maker to turn a profit, the Wall Street Journal reported, citing a memo sent to a supplier last week. The note stated all suppliers had been asked to help the Californian company become profitable. Tesla called such requests a standard part of procurement negotiations to improve its competitive advantage, especially as it increases Model 3 production, the Journal said.

Efforts to Derail a Potential Logistical Nightmare

ShipLilly

This would put pressure on prices in an economy already grappling with inflation. The president noted that the negotiated deal was a win for America during a Thursday briefing at the Rose Garden in the White House. Negotiating a complex job market.

What is Minimum Order Quantity and Should My eCommerce Business Set One?

Ship Monk

For suppliers and merchants, however, setting a minimum order quantity for your goods can mean the difference between losing money and making a profit on each sale. By forcing customers to buy more with each order, a supplier can achieve profitability through economies of scale.

Supply Chain Basics with Jason Miller

The Logistics of Logistics

His primary research stream examines firms’ logistics operations, with an emphasis on studying motor carrier safety, productivity, pricing dynamics, and driver turnover. Supplier development. Supplier selection. Supplier relationships. Negotiations.

Letter from the CEO: Coronavirus Market Update

Transplace

We are prioritizing the needs of our customers, employees, and suppliers as we collectively face one of the most unique challenges of our lifetime. Asia eastbound pricing expected to be chaotic for next couple weeks due to growing demand for export equipment and volatile oil pricing.

Is it Time for B2B Freight Providers to Learn From B2C?

Logistics Bureau

This speculative post explores the difference between B2B and B2C freight pricing. Should they offer tiered freight-price options like those enjoyed by consumers, and what stops them from doing so? That’s just what happens though when you provide them with the same service standard as your most profitable customers receive—yet it’s a practice that B2B logistics providers often follow, especially when it comes to factoring freight costs into pricing agreements.

NTT DATA Saved $125 Million With SAP Ariba

Logistics Viewpoints

NTT DATA has been steadily moving more and more of their suppliers’ contracts onto the Ariba Network. Some suppliers have four or five-year contracts, so this work is ongoing. Nevertheless, the end goal of this journey is that 80% of the spend will go to the top 20% of their suppliers.

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A Quick Guide to Roles in Procurement

Logistics Bureau

For instance, the Chief Procurement Officer will lead the sourcing process, develop the procurement strategy, identify potential suppliers, and manage short and long terms goals. Her or his tasks include the following: Making contracts with suppliers. 6) Supplier Relationship Manager.

Procurement vs. Purchasing: What’s the Difference?

Logistics Bureau

Once you have done that, you move into getting prices on the vehicles. It’s looking at what’s available on the market, the different suppliers, what their products are like, whether it matches your needs—it is not actually buying the product. But it’s not only the price.

NTT DATA Saved $125 Million With SAP Ariba

Logistics Viewpoints

NTT DATA has been steadily moving more and more of their suppliers’ contracts onto the Ariba Network. Some suppliers have four or five-year contracts, so this work is ongoing. Nevertheless, the end goal of this journey is that 80% of the spend will go to the top 20% of their suppliers.

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6 Truckload freight spend optimization best practices

FreightWaves SONAR

Track truckload freight accessorial costs As reported by Inbound Logistics , “Carriers price accessorials, such as liftgate or non-commercial delivery, at a premium. Typically pricing is prioritized, but it should also be complemented with quality and delivery time.

9 Barriers to Optimal Inventory and How to Break them Down

Logistics Bureau

Suffice it to say that, generally, it’s wise to hold service as the non-negotiable element of inventory optimisation, thereby seeking to keep the right amount of stock to meet required service levels while minimising the inventory costs as much as possible. 3: Supplier Lead Time.

How manufacturers and distributors can re-imagine procurement in the supply chain

SYSPRO Smarter ERP

They have a contract with a supplier who delivers on time, and who charges acceptable prices. A single supplier focus means that there is a high risk if the supplier closes its doors. The two main pillars of sourcing will be alternative suppliers and alternate pricing.

GlobalTranz And Echo Global Logistics Both Report 40% Fourth Quarter Revenue Growth

Logistics Viewpoints

Many shippers are tough negotiators who work diligently to drive down carrier rates. Three things make broker/MTS suppliers increasingly relevant when capacity is tight. This allows them to better predict what price a carrier will take for a move.

Global Logistics Market Analysis: 2022 Summer Edition

MTS Logistics

Last year was marked with capacity issues and high prices, but today, freight prices have decreased, while capacity has increased. West Coast ports and dockworkers are negotiating a new labor contract. They also agreed demand spikes caused higher pricing.

Inventory Replenishment Strategies that Increase Profits

EazyStock

Managing variable supplier lead times. As time passes, this can become obsolete and may need to be sold at heavily discounted prices or even written off as a bad investment. But striving for the cheapest unit price isn’t always the most cost-effective way to procure a product.

How Digitalization of the Purchase Order (PO) Can Save Time and Money

MTS Logistics

Numerous details are manually recorded, such as the products needed, quantity of items, descriptions, pricing, payment details, delivery methods and dates. Total price. Negotiate contract and send PO. As a result, communication management with suppliers is vastly improved.

How to create a reliable supply chain with effective forecasting and inventory management

SYSPRO Smarter ERP

Reliance on too few primary suppliers for critical components and materials has compounded the problem even further with unexpected ripple effects on downstream manufacturing as evidenced by the still ongoing global computer chip shortages.

SA: U.S. retailers prep for new tariffs

The LoadStar

retailers are getting aggressive positioning themselves with Chinese suppliers in anticipation of more tariffs. Walmart and Home Depot have pulled some purchasing forward, while Dollar General and Target are leaning on pricing levers in negotiations. Seeking Alpha reports: “Major U.S. In some cases, U.S. retailers are simply using a different Asian nation for sourcing.” ” The post SA: U.S. retailers prep for new tariffs appeared first on The Loadstar.

Procurement + logistics

Logistics at MPEPS at UPV

This is why is such an important thing to find an evaluate several suppliers in order to have options and mixed costs that keep us as close to our ideal or theoretical production costs. As in every kind of negotiation, but specially any including logistic processes, we need to take into account: -Big Picture. Don’t forget to take into consideration the Terms and Condition of any negotiation. One of the same.

GRI Season: The Importance and Benefits of Digitalization 

Blue Grace Logistics

During the spring of 2018, diesel prices increased in every region of the country with prices above $3 per gallon in many key logistics regions of the United States, and in August, diesel fuel costs 23 percent more compared to the previous year. The client was operating with a single national carrier model, which at a time, was working sufficiently enough for the supplier.

the race for covid-19 inoculation

Logistics at MPEPS at UPV

Diversification of suppliers has worked in the midst of a global context of limited distribution, especially for those high-income countries that bet only on vaccines produced in the West.

[WHITE PAPER] Data in the fast lane – managing automotive logistics amid component shortages

FreightWaves SONAR

Maybe that’s not exactly true – there are also issues related to the semiconductor shortage, such as record used vehicle prices, consumers buying early in order to get their desired vehicles, and vows to ditch just-in-time inventory management.

This Week in Logistics News (July 30 – August 5)

Logistics Viewpoints

I read earlier this week that Hershey said it would fall short of meeting demand for the Halloween and Christmas holiday seasons this year, blaming a scarcity of raw ingredients and difficulties in securing suppliers. The company is relying on price increases to boost growth.

Four Essential Supply Chain Management Tools

CLX Logistics

Here’s our list of the four essential supply chain management tools you need to provide the best service at the best price. Procurement tools enable businesses to manage and automate purchase orders from suppliers and quickly settle accounts.

This Week in Logistics News (April 30 – May 6)

Logistics Viewpoints

While all of this technology sounds pretty amazing, it should be said that this type of performance comes with a price tag. McCormick’s diverse supplier network helps shield it from Ukraine impacts. At some point, it seems we all have the need for speed.

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GM Sparks Outrage as it Plans for Change before Change Overtakes it

Logistics Trends and Insights

As such, the company’s chief financial officer said the company would deal with those added costs by “negotiating price reductions with suppliers, raising prices on more popular models, and cost cutting.” The impact will be wide-ranging, though the specifics are still unknown particularly terms of the number and distribution of suppliers.

How To Reduce Soft Costs in Shipping

Dedola Global Logistics

For instance, things like fuel prices, hourly wages for employees, and materials are some hard costs. A quality international and domestic freight forwarder and 3PL negotiates with multiple carriers to reduce shipping costs for their customers.

HHS researching ways to expand production of gloves, gowns

The Supply Chain Journal

also relies heavily on foreign suppliers for both products. Do you currently rely on foreign suppliers within your supply chain? Now many Chinese companies are lowering their prices — Lowe claims the price is below the cost of raw materials — and it’s hard for U.S.

Effective Stock Replenishment: Why you need it & how to achieve it

EazyStock

A key responsibility of every stock replenishment team is to negotiate the best price for the items they reorder, so that the sell-on price can be as profitable as possible.

6 Ways to Get Supply Chains Ready for the Holidays

Material Handling and Logistics

Carriers can house shipment information letting suppliers and customers know where their goods are and when to expect them to arrive at the next destination. Shippers can leverage their negotiated rates from their existing carrier relationships, and compare the full depth of market pricing across the spot bidding marketplace to find the best rates for the best service or to find extra capacity to meet excess demand.

Procurement Logistics: What Is It & Where Do Logistics Providers Fit In?

GlobalTranz

The answer is closely linked with how a company markets and contacts suppliers and vendors, reports Srikanth Pinagali. Ultimately, these raw materials must be obtained from suppliers and transported to the factory. Ultimately, the terms and conditions are laid out during contract negotiation. This also drives competitive advantage among suppliers, helping to keep prices from skyrocketing.

The role of mobile data in building the supply value chain

FreightWaves SONAR

Without high levels of visibility into suppliers and sub-suppliers, companies increase their exposure to supply chain risks and become less resilient.” Shippers with access to existing data can better predict freight pricing for freight shipments.

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Managing Supply Chain Disruptions in the Middle East

Locus

Oil price fluctuations. Fluctuations in oil prices and oil supply disruptions are majorly caused by political events, supply pipeline issues or weather problems. For example: poor quality, high costs, high lead time, supplier communication.

Ethics in Procurement – Simple, but Not Always Easy

Logistics Bureau

It does not matter whether you are a procurement professional, internal customer, external customer, senior executive, or supplier. Practice integrity, avoid conflicts of interest and personal enrichment, treat suppliers equally and fairly, and comply with legal and other obligations. A potential supplier sends you its catalogue together with a gift of an expensive-looking ballpoint pen with the supplier’s logo on it. The Supplier’s Point of View.

How to Get Your Indirect Spend Under Control

Material Handling and Logistics

Many facilities try to trim their indirect spend by negotiating lower prices on a few of their most expensive items. Second, since most site managers will do everything in their power to get back up and running as soon as possible, they will often pay extra for expedited shipping or choose a supplier that provides the quickest response rather than the optimal price or quality. Purchasing from many different suppliers instead of saving through consolidation.