Regarding the black belt negotiating of castings, it is never \'win-win\' when you have to commit to an entire years worth of product. 1st, the risk and cost associated with either reworking or scrapping the castings due to engineering changes is possible. 2nd, the supplier gets stuck with a bunch of inventory that sucks up their cash flow, takes up space, and potentially is damaged during the year. 3rd, if the supplier doesn\'t have a stellar quality program, then there is a possibility that the entire years lot of parts are suspect from a quality perspective. Better to find a way to decrease their setup times and make them \'lean\' in order to allow more setups, smaller runs, and at the same time maintaining their gross margins.

Regarding the black belt negotiating of castings, it is never 'win-win' when you have to commit to an entire years worth of product. 1st, the risk and cost associated with either reworking or scrapping the castings due to engineering changes is possible. 2nd, the supplier gets stuck with a bunch of inventory that sucks up their cash flow, takes up space, and potentially is damaged during the year. 3rd, if the supplier doesn't have a stellar quality program, then there is a possibility that the entire years lot of parts are suspect from a quality perspective.

Better to find a way to decrease their setup times and make them 'lean' in order to allow more setups, smaller runs, and at the same time maintaining their gross margins.

Continued: That is how you build a solid business relationship; open integrity and honesty. The rising cost of petroleum was not an unknown variable in this equation. We all can see the increase; as such the negotiator probably wouldn’t have minded a price increases if the supplier was upfront and honest regarding their situation, working together to come to a medium both parties can mutually agree upon. Had this situation occurred in the beginning, the negotiator would have most likely never contacted his other supplier for a quote if the main supplier had been willing to work together. Now the main supplier has opened himself up to future scrutiny when he wants to increase his pricing as he can no longer be trusted as someone who is willing to be a partner and grow with the negotiators company, as opposed to just a supplier.

Continued: That is how you build a solid business relationship; open integrity and honesty. The rising cost of petroleum was not an unknown variable in this equation. We all can see the increase; as such the negotiator probably wouldn’t have minded a price increases if the supplier was upfront and honest regarding their situation, working together to come to a medium both parties can mutually agree upon. Had this situation occurred in the beginning, the negotiator would have most likely never contacted his other supplier for a quote if the main supplier had been willing to work together. Now the main supplier has opened himself up to future scrutiny when he wants to increase his pricing as he can no longer be trusted as someone who is willing to be a partner and grow with the negotiators company, as opposed to just a supplier.

In regards to the \"Resin Supplier Gets Tough\" article: I do not believe in any way that what the negotiator did was unethical. What he did was called business. If anything is unethical in this situation, it’s the fact that a company’s number one supplier is using the rising cost of petroleum to increase prices and be unwilling to negotiate and work together. Also, the reason the supplier was playing hard ball to begin with could have been because they new they were the negotiators number one supplier, believing the negotiator would not go to another vendor for pricing. Given the fact that the supplier called back and matched the lower price so quickly says something about the hand the main supplier was trying to play. The main supplier should have been willing to work with the negotiator with out him having to go elsewhere to begin with.

In regards to the "Resin Supplier Gets Tough" article: I do not believe in any way that what the negotiator did was unethical. What he did was called business. If anything is unethical in this situation, it’s the fact that a company’s number one supplier is using the rising cost of petroleum to increase prices and be unwilling to negotiate and work together. Also, the reason the supplier was playing hard ball to begin with could have been because they new they were the negotiators number one supplier, believing the negotiator would not go to another vendor for pricing. Given the fact that the supplier called back and matched the lower price so quickly says something about the hand the main supplier was trying to play. The main supplier should have been willing to work with the negotiator with out him having to go elsewhere to begin with.

In regards to the black belt negotiations \"Resin supplier gets tough\", this should not be advertised as a success, at least with the information provided. This is highly unethical and should not be practiced, Period. Divulging competitor\'s pricing in order to get a lower cost will ultimately undermine any trust build between both the small and larger resin provider. This behavior is self destructive to a operational network as well as second and third tier suppliers. Why would the smaller company feel good about providing a lower cost with no award, as well as his pricing being used as a tool to gain better pricing from a competitor? By subjecting the smaller supplier to this discrimination you run the risk of alienating them the next time you need to off-source your resin.

In regards to the black belt negotiations "Resin supplier gets tough", this should not be advertised as a success, at least with the information provided. This is highly unethical and should not be practiced, Period. Divulging competitor's pricing in order to get a lower cost will ultimately undermine any trust build between both the small and larger resin provider. This behavior is self destructive to a operational network as well as second and third tier suppliers. Why would the smaller company feel good about providing a lower cost with no award, as well as his pricing being used as a tool to gain better pricing from a competitor? By subjecting the smaller supplier to this discrimination you run the risk of alienating them the next time you need to off-source your resin.

Regards to the resin negotiated price reduction with the high volume supplier, was the smaller, lower price bidder awarded with any increased % of business?

Regards to the resin negotiated price reduction with the high volume supplier, was the smaller,
lower price bidder awarded with any increased % of business?