How to save money through suppliers without sacrificing the value they bring
By Costas Xyloyiannis, CEO of HICX
With inflation hampering product sales and price rises, manufacturers have profits to protect. Many will react, as the sector has done for decades, by beating down suppliers on price. All this does though is bounce the problem around the supply chain. It drains suppliers of the resources they need to deliver vital enhancements – including supplies, information, and ideas – without which, brands are less competitive.
So, how can they protect profits without being vulnerable to significant risks and open to new opportunities?
I believe that brands can keep a competitive edge despite inflation. Let’s help suppliers help us. Here’s how…
See suppliers as partners
The best thing brands can do to cut costs through suppliers is to partner with them. This empowers suppliers to give their best, and when suppliers can give their best, brands are better placed to extract the value they need – such as quality ingredients, compliance information and ideas for innovation – in addition to reducing costs.
Therefore, the solution to managing profits in inflation is not to squeeze suppliers. It’s to give them a helpful experience. If there is one thing brands really need in order to collaborate with their suppliers, it’s trustworthy data.