Supply Chain Management
Conclusions
- Growing role of suppliers
- Interrelatedness between costs and prices
- Internal & external factors
- Importance of negotiations
- Cultural awareness and differences
Agata Kajzerska
Laura Sabel Fuentes
Emil Sjöblom
The learning curve
100 units - 50€
200 units - 40€
400 units - 32€
___________
300 units - 36€ each
An instrument in developing purchasing strategies
Negotiating with the supplier
Introduction
"An 80 per cent learning curve means that if the cumulative number of produced goods is doubled, only 80 per cent of the original amount of hours is needed to produce one unit"
What will an increase in price mean for us?
- Preparations
- Cultural awareness and differences
- Negotiating about the price
- Additional costs (transportation, delivery)
- After sales services and maintenance agreements (warranties)
- Payment terms
How will we handle the situation?
Cost-based pricing: the supplier’s offering price is directly derived from his cost price.
Market-based pricing: The price of the product is determined on the market and is generated by market circumstances
Competitive bidding: the price is influenced by market factors as well as cost factors.
Steps:
1) Negotiate with suppliers
2) Evaluation of the options
3) Measure the value of the relationship with the supplier
4) Guarantee of sustained continuity of supply
5) Decision (preferably the original supplier)