I hope that you have enjoyed the article \u201c4 Vendor Relationship Management Activities.\u201d<\/p>\n
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Ask a group of procurement professionals how to achieve cost savings and you\u2019ll likely hear suggestions about starting a sourcing project.\u00a0 Or negotiating.\u00a0 Or consolidating spend in a previously unmanaged category.\u00a0 Or any other activity that occurs before a long-term supplier is selected.<\/p>\n
Then ask them how to achieve cost savings with current vendors and you\u2019re likely to get a few blank stares.\u00a0 Extracting value out of existing and ongoing vendor relationships is often not top-of-mind in terms of where to uncover hidden cost savings.<\/p>\n
But it should be.<\/p>\n
I do an exercise when I conduct on-site procurement and strategic sourcing training.\u00a0 In this exercise, I split the team up into groups and give them some proprietary instructions for identifying cost savings activities in the context of an ongoing vendor relationship.\u00a0 And this technique of mine opens the floodgate for ideas!<\/p>\n
The photo included in this post shows all of the cost savings ideas that came out of a 20-minute session that I conducted.\u00a0 And these are all ideas designed to be implemented when working with an existing vendor.<\/p>\n
If you\u2019re not looking for new value in existing vendor relationships, you are not maximizing your contribution to your employer!<\/p>\n
Recommended Reading<\/strong><\/p>\n Why 2015 Could Be The Year for Marketing and Procurement Team-Ups \u2013 Part II<\/a> I hope that you have enjoyed the article \u201c4 Vendor […]<\/p>\n","protected":false},"author":12,"featured_media":4052,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n
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