“If you receive a form letter from a supplier that says, ‘Our prices are going up by X%’ you may want to manage that differently than a supplier that comes to you and says, ‘Look, I’m really struggling. Can we work together to figure this out?”
News of supply shortages and price increases seem to be everywhere. For consumers, that means their dollar doesn’t buy quite as much as it used to, but for procurement, it means every supplier email or call is likely to be a request for a price increase. What is procurement to do?
In this crossover episode from The Sourcing Hero podcast, produced in partnership with Una, Host Kelly Barner flips the tables to interview AOP Founder and Managing Director Philip Ideson. His advice on how to address supplier price increase requests is timely – as is his input on how procurement can avoid being ‘re-pigeonholed’ as a cost-only team.
If you enjoy this interview, subscribe to The Sourcing Hero podcast for weekly conversations on topics of interest to procurement with a wide-ranging group of guests.
In this conversation, Phil shares his perspective on:
- How procurement should respond to a supplier that reached out with a request for a price increase
- What options procurement has for mitigating the increase once it has been determined to be a valid request from the supplier
- If procurement needs to worry about getting TOO GOOD at protecting the bottom line in challenging times
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