❌ Are You still taking vendor prices at face value?  (don't, as it costs You real money, be a pro and know the proper walk-through) Think Your suppliers are giving You the best deal? Guess again. Most companies are overpaying because they haven’t mastered Should Cost Analysis.Why leave money on the table when You can expose hidden costs and negotiate like a pro? 🔥Step 1: Collect real cost data (not just what your vendor says).Step 2: Challenge those numbers with insights from experts and site visits.Step 3: Calculate the real cost and tailor Your strategy to exploit the open spaceIt’s time to stop playing by Your vendor’s rules and start setting the terms Yourself. 💥Ready to flip the script? PS. If You’re still trusting vendor prices, You’re probably overpaying. 💡

Have You ever walked through a supplier’s processes and thought, "where can we optimise? Leaving money on the table ?Here's a secret - small changes can lead to massive cost reductions.Imagine transforming your supplier’s process flow with just a few smart adjustments. Curious how?If You’re looking to reduce costs, here’s a quick flow to follow during Your next supplier workshop🔄 TransportationAre Your shipping costs eating into margins? See if packaging can be reused or materials can be combined to reduce shipments.🔧 Material HandlingCan we shorten supply lead times? Focus on ease of handling during manufacturing.🔍 InspectionEliminate redundant inspections that don’t add value. Reducing Total Cost of Ownership (TCO) starts here.🛠 SetupAre there faster setups possible with alternative machines? Look for opportunities to cut time.🕑 Running Time is money! What’s the most expensive part of Your current process, and how can You automate it?🧾 Overheads Streamline Your admin. Explore opportunities for better contracts and automation in ordering systems.This simple flow can transform Your supplier workshops into real savings.👉 Want more insights on optimising supplier processes? PS. Did You know that 20% of suppliers often overcharge on transportation just because processes haven’t been reviewed? What’s your biggest area of cost leakage?

You saved 20%? congratulations. You're actually Losing 200% (and You don’t even know It) - here’s why 🕵️‍♂️That 20% discount You fought so hard for? It’s blinding You to the real losses. In reality, Your total costs are skyrocketing - and the worst part? You’re also losing out on untapped profits.Think you’re winning the cost game by cutting supplier prices? Think again. The money You save upfront is just a mirage. What if I told You the real cost of Your product is up to 205% of what You thought? 😲Scary ? What is the guy talking a about ? With Total Cost Analysis, we expose the hidden costs that silently inflate your expenses: 1️⃣ Landed costs like shipping, insurance, and storage that can hike up expenses by 125%. 2️⃣ Life cycle costs such as maintenance and handling that quietly add 140% more. 3️⃣ Ownership costs, from R&D to supplier management, that push total expenses up to 165%.4️⃣ Opportunity Cost  the profits You’re missing by focusing on price instead of optimising  entire procurement chain.💡 Still negotiating on the lowest price? It’s time to tackle costs holistically.Let’s uncover those hidden costs together and start saving where it truly matters.P.S. Have You ever factored in lost business from poor supplier performance? That could be another 20% you’re losing. P.S. 2 Ever wonder how much profit You’re losing by sticking with a low-cost, high-risk supplier?

How automation is changing procurement – and why human skills matter more than ever I am delivering #digitaltransformation not tech by itself (jut to be clear) People, Process, Technology - order not random World is moving towards automation, the skill set we need in procurement is changing. Yes, technology will handle a lot of the technical side of things, but it can't replace the value of interpersonal skills.Here's why 👇1️⃣ Emotional Intelligence As technology advances, relationships with suppliers are key. During the COVID-19 crisis, organisations that thrived were those with strong personal connections.2️⃣ Personal ContactAutomation won't replace the human element. It's personal relationships that build trust, navigate challenges, and keep the supply chain moving, even in a crisis.3️⃣ Adaptability While systems handle data, procurement leaders must focus on adaptability and resilience. 𝗬𝗼𝘂 𝗰𝗮𝗻’𝘁 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗲 𝘁𝗿𝘂𝘀𝘁 !🔔 How are You preparing Your team to adapt to these changes?PS: What is one interpersonal skill You think will be most important in the future? Let me know in the comments! 👇

Total Cost of Ownership (TCO), which is the total cost associated with the purchase, use, maintenance and ultimate disposal of a product.TCO takes into account all the hidden costs associated with owning and using a product or service, not just the purchase price.TCO is key in purchasing management as it allows for a more accurate comparison of suppliers, the development of a value-focused purchasing strategy and the creation of long-term partnerships rather than just negotiating price.

“Commodity Positioning Matrix,” a tool for purchasing managers that helps them determine the best strategies for different types of commodities. The matrix classifies commodities based on their business impact and market complexity, and then identifies appropriate strategic levers. “Utilization” levers focus on reducing costs through scale-up, price optimization and global sourcing. “Collaboration” levers, on the other hand, promote building strong supplier relationships and innovation through joint process improvement, modifying product specifications and restructuring relationships.

Being against the approach that assumes that technologies by themselves will solve all problems in business.Technology is only a tool that requires proper implementation, matching to the specifics of the organisation and proper training of employees.Effective use of technology requires a focus on people and processes, not just on the tools themselves.

The differences between traditional cost cutting and strategic sourcing.Traditional cost-cutting methods are like patching a hole in a boat, while strategic sourcing, which focuses on building supplier relationships and analysing data, is a more long-term solution leading to lower costs, better quality and reduced risk.