You're facing supplier price changes. How can you effectively engage stakeholders in the conversation?

Having worked in retail operations for over 9 years, I understand the importance of clear and transparent communication. Engaging stakeholders effectively requires presenting data-driven insights on how supplier price changes impact our bottom line, proposing potential strategies to mitigate these impacts, and inviting collaborative discussions to find the best path forward. Keeping everyone informed and involved ensures we can navigate these changes together.

When facing supplier price changes, effective stakeholder engagement is crucial. Strategies include building relationships, understanding business goals, adding value to conversations, tailoring communication styles, and actively listening to feedback. Transparent communication and cooperation contribute to successful procurement outcomes.

When your supplier is facing price changes, it's crucial to involve your stakeholders transparently and promptly. After we have gathered all relevant data and have a full understanding of the reasons behind the price change, we schedule a meeting with our stakeholders. Sometimes we will highlight the potential impacts on our business to our stakeholders but I’m not a big fan of this. We must have a solution in procurement. We would look at renegotiating contracts, finding alternative suppliers, or adjusting pricing. Communication is the key to all negotiations between all parties. By fostering collaboration and keeping communication channels open, you can work together to navigate these changes effectively.

Graeme my business partner is the strongest in collating Data. Data is not merely a buzzword for us, it’s a cornerstone of our success in procurement. By harnessing the power of data analytics, we are empowered to make informed decisions, enhance operational efficiency, strengthen supplier relationships, optimize costs, and mitigate risks effectively. In an evolving business landscape, where agility and foresight are invaluable assets, we continue to show that embracing data-driven strategies is not just helpful—it's imperative for sustainable growth and competitive advantage in procurement and supply chain management

Muchas veces después de analizar los productos sustitutos, aditivos adicionales que permitan el bajar el costo promedio, buscar los diferentes origenes por producto (Existe un alternativo equivalente en China?) y habiendo agotado toda la exploración sobre el incremento del producto por parte del proveedor, faltaría preguntarnos: Que tanto impacta en el costo final del producto y si se puede trasladar a nuestros clientes a través de un incremento del precio?. No va a ser fácil pues depende si nuestro producto terminado tiene una demanda elastica, inelastica o que tanto se afecta frente a una suba de precios. A veces es mejor sacrificar un poco el margen (entendiendo que dejando rentabilidad) a permitir que otro nos robe el mercado.

To negotiate tactics during supplier price changes, actively engage stakeholders by clearly communicating the situation and its potential impact. Present data and analysis to support your position. Involve them in brainstorming solutions, considering alternative suppliers, or adjusting budgets. Regular updates and collaborative decision-making ensure alignment and strengthen your negotiation stance.

To face Price changes we can use negotiation techniques as: • Develop Alternatives: Know your best alternatives if negotiations don’t go as planned. This could include finding alternative suppliers or adjusting your purchasing strategy. • Leverage Your BATNA: Use your alternatives as leverage to negotiate better terms. • Anchor and Adjust: Start negotiations with a clear and reasonable price point. This helps set the frame for the negotiation • Bundle and Volume Discounts: Negotiate for discounts based on volume commitments or bundling of products and services. • Price Protection Clauses: Include clauses in contracts that limit the frequency and extent of price increases, or that tie price changes to specific, transparent cost indices.