Analysis of Purchasing Advantages and Disadvantages
The purchasing department must evaluate the negotiating power of the supplier, what are the advantages and disadvantages, in order to choose the appropriate negotiation strategy and method. For example, belonging to the buyer's power to dominate the situation, there are the following:
(a) the number of purchases accounted for the greater the ratio of the supplier's production capacity (b) the growth of supplier production capacity exceeds the growth of the buyer's demand (c) the supply of manufacturers of production capacity utilization is low (d) the seller of the final product of the high profitability (e) the seller's market is highly competitive, and buyers have no designated sources of supply (f) the cost of materials accounted for the low ratio of the product's Low ratio of material costs to product selling price (7) low cost of loss due to material breakage and downtime (8) buyer's high self-manufacturing capacity and low cost of self-manufacturing (9) low cost of adopting new sources (10) buyer's purchase and shipment of sufficient time, and the seller's eagerness to obtain orders
Observation of the confrontation between the forces of purchasing and supply, naturally, we can identify opportunities or weaknesses, and accordingly, be able to develop a strategy to deal with the supplier (squeezing or balancing or polygamy). Polymorphism strategy), these strategies will become the purchasing staff to carry out the work of the course of action.
02
One of the bargaining techniques -- when the buyer has the upper hand
(1) Using the knife to kill a man Usually, after requesting quotations, there may be several quotations from vendors. After analyzing and reviewing the quotes, the quotes are then listed in order of preference (price comparison). The bargaining starts with the highest quote first, or the lowest? Do you only look for the lowest bidder? Do you negotiate with each vendor separately? In fact, there is no standard answer to this question, and it depends on the situation.
General purchasing staff are quite busy, if the offer one by one with the vendor bargaining, I am afraid that "time is not with me". And the more vendors you bargain with, the more trouble you'll usually have deciding in the future. If you start bargaining only with the vendor who offers the lowest price, the vendor may be arrogant and may not be willing to lower the price.
Thus, the so-called "borrowing the knife to kill people" is to start from the one whose offer is not the lowest. If time is limited, the first to find than the results of the ranking of the third lowest price to bargaining, to explore the limits of its reduction, and then find the second lowest price to bargaining, after the two bargaining, "the bottom price" may come to light.
If this "reserve price" is lower than the original lowest bidder, it means that the third and second lowest bidders have a high willingness to do the job, and then the original lowest bidder can be found again to bargain. With the aforementioned third, the second lowest price reduction after the "bottom price", the lowest person is required to drop to the "bottom price" to undertake, to achieve the purpose of the "borrowed knife to kill".
If the original offer of the lowest price is not willing to reduce the price, it can be handed over to the second or third lowest price negotiated after the lowest price transaction. If the original lowest bidder happens to fall to the second or third lowest price, then the original lowest bidder as a principle.
"Borrowing a knife to kill" to achieve a reasonable price reduction, should be good enough to withdraw, so as not to cause the offer vendors to "cut the neck of the competition", resulting in delays in the time limit. In addition, the exclusion of the original offer of the high vendors of bargaining opportunities, can encourage competing vendors have the courage to put forward a lower offer.
(2) over the so-called "over the general", that is, procurement staff should make good use of the bargaining power of the supervisor.
Often the supplier will not automatically drop, must be reasoned by the procurement staff, however, the supplier's willingness to reduce the price and the magnitude of bargaining depending on the object. Therefore, if the purchasing staff is not satisfied with the results of the bargaining, at this time should ask the supervisor (section chief) to bargain with the supplier (salesman or section chief), when the buyer raises the level of bargaining, the seller has a sense of respect, may agree to increase the rate of price reductions.
If the purchase amount is huge, the purchasing staff even went so far as to request a higher-level supervisor (such as the purchasing manager, or even a vice president or general manager) to invite the seller's business supervisor (such as the business manager, etc.) to an interview, or directly from the buyer's high-level executives and the other party's senior executives in direct dialogue, which is usually a good result.
Because senior executives not only have excellent bargaining skills and negotiating ability, but also have high social relations and status, and even have mutual investment or business cooperation with the seller's operators, so usually just by saying hello, you can get unexpected bargaining results.
Because, if the sales staff to avoid "through the general" and directly with the purchasing manager or high-level executives to negotiate, is bound to offend the purchasing staff, the future risk of losing the opportunity to ask for quotations, and therefore usually accept the arrangement to raise the level of the bargainer one by one.
(3) to zero procurement staff to obtain the most reasonable price, must be in-depth understanding of the supplier's "bottom price" is how much? If you only get the supplier's general offer, according to which the bargaining with them, the chances of losing out on quite a lot.
If you can ask the supplier to provide a detailed cost analysis of the table, the "kill price" will not be wrong. Because the real cost or the bottom price, only the supplier's psychological understanding, let the procurement staff hack and slash, I am afraid that in the end, or can not take advantage of the bargain.
Therefore, especially the items to be purchased by a few different parts of the combination or assembly, it is appropriate to ask the supplier to "turn the whole thing into zero", listing the parts and one by one quotes, and another contact with the manufacture of such parts of the professional manufacturers of independent quotes, so as to seek the lowest single price or total price, as a bargaining basis. This approach will also face the problem of purchasing completed products or individual parts for self-assembly procurement decisions.
(D) the so-called pressure to reduce the price of the so-called pressure to reduce the price of the buyer's advantage, the buyer to coercive way to require suppliers to reduce prices, and do not consult the supplier's opinion. This is usually in the buyer in the product market is not good, or competition is very fierce, to the occurrence of loss or profit margins, in order to improve its profitability and make the killer app.
Because of the market downturn, so the supplier also has a backlog of inventory, eager to get out of the product for the phenomenon of working capital. Therefore, this time to form a buyer's market. Procurement staff usually follow the company's emergency measures, notify the supplier from a specific date to reduce the price of a number of;
If the original supplier lacks the willingness to cooperate with the replacement of the source, of course, such a drastic means of price cuts, will destroy the harmonious relationship between supply and demand; when the market improves, the original commissioned by the supplier, either "tooth for tooth! "
These are the most important factors in the development of a new product, and the most important are the development of a new product.
In short, in taking the "pressure to reduce prices", must pay attention to do not "kill the chicken and take the eggs", so as not to jeopardize the long-term supplier relations or provoke confrontation of the action. Four. Bargaining skills of two - when the buyer and seller are evenly matched in the buyer and seller are evenly matched, the purchasing staff of the bargaining skills of the following two:
(a) want to capture the indulgence of the buyer and seller as a result of the balance of power, any party can not win with the force, and therefore must be fighting wisdom; buyers should try to hide the willingness to buy, do not obvious The buyer should try to hide the desire to buy, do not obviously show the mindset that must be bought, otherwise if the seller recognized the situation that must be bought, will make the buyer fall into a disadvantage.
So, at this point, the buyer should take a "if that is, if not" stance, and start with a tentative inquiry. If the seller can be judged to have a strong intention to sell, and then ask for a lower price, and make no agreement to give up or seek other sources of expression.
Usually, if the buyer's offer is too low, the seller has no intention of selling, will not ask the buyer to increase the price; if the seller wants to sell, but the profit is too low, that is, the buyer is asked to increase the price. At this point, the buyer's needs if quite urgent, should be able to agree to a slight increase in price, a quick deal; if the buyer is not urgent needs, can show that never increase the price of the meaning of the seller is very likely to agree to the buyer's request for a low price.
(ii) the difference between the buyer and seller as a result of bargaining, there is a gap, if the two sides do not give way, the deal collapsed; the buyer can not get the necessary materials, the seller lost the opportunity to make a profit, the two sides are losers. Therefore, in order to promote the two sides of the transaction, the best way is to take the "middle" way, that is, the two sides of the bargaining difference, each bear half, the results of both sides are winners.
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