Ask Timpo: should I get my suppliers to repitch?
Q: One of my peers suggested I ask my suppliers to re-pitch and bring new suppliers into the tender process. This sounds like a great way to improve service levels and potentially cut costs – but is it worth the backache?
Will getting your suppliers to repitch
drive their prices down?
A: Most buyers think they get the best prices and are quite offended if you suggest a better deal is available elsewhere. I know how they feel. Many years ago, I was a buyer myself. But experience has shown me that nearly every supplier has a bit up their sleeve.
It’s wise to have a price purge every 18 months. By asking as many potential suppliers as possible to pitch for your business, you will provide your buying team with a regular reality check.
Don’t just rely on emails or written quotes. Meet all the contestants face to face – this’ll be time consuming, but is well worth the trouble. A week spent meeting all the main players in your market will make you better informed and fill you with new ideas. Price is not the only factor. The loyalty of long-term suppliers can be invaluable. But it is dangerous to relentlessly stick to the same sources.
Keep monitoring the competition to check the latest trends. Benchmark your buying prices and keep your favourite suppliers on their toes.
Picture: source