Look at Suppliers’ Input Prices with a New Lens
As commodity prices increase, suppliers come knocking, pushing through commensurate increases. But what happens when those same commodity prices fall? Too often, purchasers fail to get a break. Consider the situation of an aerospace and defense supplier. As key metal prices rose, the company grudgingly accepted its suppliers’ price increases for machined parts. Trouble is, the company lacked good tracking data on commodity indexes. So … [ Read more ]
Author: Clinton Anderson | Source: A fresh look at procurement | Original Publication: Bain | Subjects: Finance, Management, Operations