Veridion’s Post

Continuing with a theme: pricing model design Thankfully I spent over 10 years working for a distribution company which allowed me to learn about how organizations establish their pricing. And it isn't as easy as it might look. Yet it is something that every supply chain professional should learn. This knowledge will greatly assist you when it comes to negotiating with suppliers. You know what else will come in handy? This excellent document created by Michele Romano.

📦 25 Years in Supply Chain, and Here’s My Biggest Lesson One of my hardest-learned lessons came from a costly mistake early in my career: I lost a reliable supplier by pushing too hard for a price cut. The quality was impeccable, the relationship was solid—but my attempt to secure the lowest price ended the partnership. That day, I learned something no business manual could teach: 💡 A strong supply chain is built on partnerships, not bargains. Here’s what experience has taught me about supply chain negotiations: 1️⃣ Understand the Non-Negotiables Raw materials have fixed costs. Asking for unrealistic cuts can strain relationships. 2️⃣ Respect Regional Differences Labor costs vary globally. Comparing costs across geographies is impractical. 3️⃣ Prioritize Profit Margins Over Price Cuts A supplier’s profit ensures their stability, which strengthens your supply chain. Here’s the truth: A 10% saving is meaningless if your supplier disappears during peak season. The suppliers who helped me thrive weren’t the cheapest—they were the ones who stayed reliable through challenges. 📌 Build partnerships, not just contracts. 📌 Negotiate for mutual growth, not just immediate savings. What’s the most expensive lesson your supply chain has taught you? Share your insights below! #SupplyChain #Sourcing #Partnerships #BusinessLessons #Manufacturing #productsourcing #suppliersourcing #procurement #sampledevelopment #pricing #negotiation

📦 25 Years in Supply Chain, and Here’s My Biggest Lesson One of my hardest-learned lessons came from a costly mistake early in my career: I lost a reliable supplier by pushing too hard for a price cut. The quality was impeccable, the relationship was solid—but my attempt to secure the lowest price ended the partnership. That day, I learned something no business manual could teach: 💡 A strong supply chain is built on partnerships, not bargains. Here’s what experience has taught me about supply chain negotiations: 1️⃣ Understand the Non-Negotiables Raw materials have fixed costs. Asking for unrealistic cuts can strain relationships. 2️⃣ Respect Regional Differences Labor costs vary globally. Comparing costs across geographies is impractical. 3️⃣ Prioritize Profit Margins Over Price Cuts A supplier’s profit ensures their stability, which strengthens your supply chain. Here’s the truth: A 10% saving is meaningless if your supplier disappears during peak season. The suppliers who helped me thrive weren’t the cheapest—they were the ones who stayed reliable through challenges. 📌 Build partnerships, not just contracts. 📌 Negotiate for mutual growth, not just immediate savings. What’s the most expensive lesson your supply chain has taught you? Share your insights below! #SupplyChain #Sourcing #Partnerships #BusinessLessons #Manufacturing #productsourcing #suppliersourcing #procurement #sampledevelopment #pricing #negotiation

Many supply chain organization grapple about which suppliers should be considered strategic vs. transactional and how the organization should manage the relationship with them. There are several, must-have, processes that need to be in place when dealing with a strategic supplier. #strategicsupplier #supplychain #supplychainmanagement #supplier

An ambitious supplychain strategy is good, so long as it's realistic. A plan with a level of alignment to majority of suppliers and their own strategies as well as other market dynamics. Being assured that your strategy can be fulfilled by the supplychain and that you're of course ready to be an adopter of change and emerging solutions identified. Being too much of an outlier could lead to increased cost, risk and other supply impacts. It could also limit supplier options and move you into the premium pricing bracket. Therefore an effective strategy, which propels you has to be balanced. Getting the right mix of "safe and known" with a balance of risk into the "ambitious uncertainty." A supplychain with contingent routes , effective organisation with a well tested, realistic plan and a flexible contract can achieve. #supplychain #procurement #buyer #client #supplier #contracts #contractmanagement #contractmanager #market #growth #innovation #change #futures #strategy #organisation #commercial #business

Supply chain failures can cost your business more than just money; they can tarnish your reputation and disrupt operations. Learn from the mistakes of industry giants like Nike and McDonald's. In our latest blog post, we dissect the root causes of supply chain failures and share valuable lessons to help you avoid similar pitfalls. From flawed sourcing strategies to transportation bottlenecks, we cover it all. Read now to fortify your supply chain and safeguard your business's success. #SupplyChain #BusinessStrategy #LessonsLearned https://lnkd.in/evjg6avS 

Learn how you can prevent supply chain failures which can disrupt your operations, cost your company money and potentially cause reputational damages here:

Supply Chain Management Best Practices: Insights from Successful Partnerships #supplychain  #supplychainsolutions Unlock Success with These Key Purchasing Tips: 1.Work with Reputable Suppliers: Partnering with established suppliers can significantly reduce inventory risks and improve product quality. For example, in one of our leading projects, our collaboration with a professional supplier not only led to rapid product development but also resolved design issues proactively. This partnership resulted in timely delivery and higher product standards. 2.Establish Strong Relationships: It's essential to build trust and shared goals with suppliers. In one of our projects, our company performed online inspections at the factory for every production step. This commitment to quality and transparency required us to foster strong relationships with the factory, which ultimately ensured that production met our exacting standards and strengthened our long-term partnership.  #Growth #B2B 3.Communicate Clearly: A clear specification sheet that both the buyer and seller agree on is critical to successful partnerships. This document should detail all requirements, ensuring that both parties have aligned expectations. Additionally, establishing a systematic approach to testing products against these specifications is essential. A defined criterion for determining whether testing results are passed or failed helps maintain quality control and build trust in the manufacturing process. #partnerships #supplier 4.Regularly Evaluate Risks: Assess suppliers’ financial stability and reliability consistently. Key strategies include: Diversification: Engage multiple suppliers to mitigate risks. Emergency Stocking: Develop plans to handle market fluctuations and ensure uninterrupted supply. 👏 What are your best practices for effective supply chain management? Share your thoughts below! #marketing #SupplyChainManagement  #business

Starting the Sourcing Journey: Key Steps to Success Every successful sourcing journey begins with a meaningful conversation. Building relationships and understanding the potential partner's capabilities is crucial. The next step involves securing vital documentation, such as a distribution certificate or license, to ensure credibility and compliance.An essential part of this process is arranging a visit to the factory. Seeing the operations firsthand provides invaluable insights into quality, processes, and overall reliability. These steps lay a strong foundation for long-term partnerships and smooth supply chain management. #Sourcing #SupplyChain #BusinessRelationships #Manufacturing

Tier 1 Suppliers vs Tier 2: What’s the Difference and Why It Matters Explore the key differences between Tier 1 and Tier 2 suppliers and their impact on effective supply chain management. The post Tier 1 Suppliers vs Tier 2: What’s the Difference and Why It Matters appeared first on Tier 1 HUBZone Certified Woman-Owned Office and Industrial Supplier.