ProPurchaser.com’s Post

Modeling is powerful. It not only lets procurement know what price they should be paying, it also provides compelling arguments during negotiations. Not everything a company buys is as simple as a tin can or a pallet where it is possible to track the cost of a single commodity like steel or wood. Many things are made from a combination of materials and justify the building of a should-cost model. Don’t stop reading! Should cost modeling is much simpler than you may think. Modeling is powerful. It not only lets procurement know what price they should be paying, it also provides a compelling argument for negotiations. For more on using should cost modeling in your next supplier negotiation, read here: https://lnkd.in/e-j3uUd7 #procurement #negotiation #modeling Rod Sherkin Angela Frank Jordan Badenhop

Have you explored our collection of 2-minute tutorials? https://lnkd.in/e7BF9n-q These very short webinars are intended to give you a good idea and then send you on your way to put it into practice. Popular tutorials include: - Silent Slopes: What you need to know in a nutshell - Building a Negotiator's Should Cost Model (steel and plastics) - Price Creep: How to stop it for good Attend one or more today and then consider a complimentary ProPurchaser trial (no credit card required): https://lnkd.in/e3VhGM35 #tutorial #procurement #costmanagement Rod Sherkin Jordan Badenhop Angela Frank

REMINDER: 2-Minute tutorial at 1pm ET today https://lnkd.in/eQ4Vuc_g Turn Sales Reps into Champions for Your Cause - lower pricing Sales Reps are natural allies - they want to sell; and you want to buy. If price is an obstacle, they will be keen to remove it. Arm them to help you achieve lower pricing. #negotiation #procurement #webinar Jordan Badenhop Angela Frank Rod Sherkin

🍫 Chocolate makers, short on supply, are bidding Cocoa into the stratosphere. Cocoa for May delivery closed up $710 (7.9%) at $9,649 per ton in New York on Monday, setting a new record high. The price is up 60% this month alone, as the global supply crunch was exacerbated today by news that Ghana (#2 in world production) is facing funding problems. ** Sign up for a complimentary trial to ProPurchaser to monitor changes to Cocoa and other key commodities and raw materials - no credit card required https://lnkd.in/e3VhGM35 #commodities #cocoa #ghana Rod Sherkin Jordan Badenhop Angela Frank

Sales Reps are natural allies - they want to sell; you want to buy. If price is an obstacle, they will be keen to remove it: https://lnkd.in/eQ4Vuc_g Arming sales reps to help procurement achieve lower pricing is the subject of this presentation. Join Rod Sherkin at 1 pm ET on April 2nd for our next ‘2-Minute Tutorial’ #webinar #procurement #negotiation Angela Frank Jordan Badenhop

Join us for our next 2-minute Tutorial, presented live by Rod Sherkin: Turn Sales Reps into Champions for Your Cause - Lower Pricing April 2nd at 1pm ET. Register below! #procurement #negotiation #pricing Jordan Badenhop Angela Frank

Never enter a negotiation without first researching what has happened to your supplier’s costs: https://lnkd.in/e5mGDvBE 🥇 This 'Golden Rule' will help you do two things: - Identify opportunities to negotiate lower prices, and - Prevent price creep. As procurement and supply chain professionals, we are driven to negotiate and realize savings on behalf of our company. Because of that, we often focus on prices: historical prices, current prices, proposed new prices, price variances… If we want to deliver maximum value, however, we really need to be focused on suppliers’ costs and only accept increases if they are cost justified! This works both ways: we should demand price decreases when we see their costs falling. Today’s procurement professionals have amazing access to data. We can build a solid foundation of information and tie all of our decisions to it. But we have to make sure we’re anchoring everything to costs rather than prices. Costs are more precise and make a more compelling argument at the negotiating table. They are more closely tied to the supplier’s true profitability than prices are. Take out a complimentary trial of ProPurchaser to start working by the Golden Rule today! https://lnkd.in/e3VhGM35 #procurement #commodityprices #negotiation Rod Sherkin Jordan Badenhop Angela Frank

Is it possible that a Should Cost Model with only one raw material can work? Yes - and they are surprisingly effective and easy to build. Join us at 1pm ET on February 20th for a ‘2-Minute Tutorial’ that explains why the best 1st- pass models often contain only one material: https://lnkd.in/etNZHi5F #webinar #negotiation #costcontrol

Simple Works Best – Should Cost Models with only one raw material: https://lnkd.in/etNZHi5F Negotiators' Should Cost Models built with only one raw material are surprisingly effective and easy to build. Our ‘2-Minute Tutorial’ on Feb 20th with Rod Sherkin will explain why the best 1st-pass models often contain only one material. #webinar #modeling #procurement Jordan Badenhop Angela Frank

A True Story About Cost Transparency ProPurchaser President Rod Sherkin’s first purchasing job was with Pillsbury/Green Giant. One day his can salesman called and said, “I’m sorry, Rod, I’ve got to raise your can price.” The proposed increase brought the cost of the can above what they paid for the corn! Over the course of a few months, Rod fielded half a dozen similar calls from suppliers asking for increases. The reasons were always the same: they were “just trying to stay whole,” responding to price increases from their own suppliers. The higher prices he was facing were driven by higher costs. That’s when Rod realized how critical it is to better understand suppliers’ costs. He needed a way to independently estimate the impact of input cost changes on his contracted prices. Read the rest of the story here: https://lnkd.in/eG6--wU #procurement #costmanagement #suppliermanagement Jordan Badenhop Angela Frank