Every corner of the company is feeling the pressure to trim expenses, so you’re not alone.

But don’t let the penny pinchers get away with “you need to get cheaper suppliers.”

That, in the long run, will end up costing more than you could ever save.

So how can you achieve cost savings with your current crop of suppliers?

There are three tactics that have worked for other Procurement pros:

• Just ask. Before you make any drastic moves, ask your suppliers for ideas to trim costs without hurting the bottom line. The suppliers that are concerned about keeping your business will step right up.
• Get together. There’s safety in numbers — and there’s usually cost savings in numbers, too. There are other people out there who are buying the same materials or goods from the same suppliers as you are. Is there a way you can combine your purchases that’ll save money in the long run? One place to start: Trade organizations and professional societies.
• Clean house. You’d be surprised how many Procurement operations have overlapping inventory. Start lining up specifications with an eye toward duplication. Any overlapping inventory you find has cost savings potential.

Tags: costs, inventory, procurement, specifications, suppliers