Chances are, you’re feeling the heat from top management to bargain your suppliers down in price.

For some Purchasing & Procurement pros, it’s actually a bit gratifying, as they get the opportunity to land a few body blows on suppliers that’ve been pounding them for the past few years.

Why is there this sense of satisfaction?

For the 2-3 years, suppliers have been jacking up prices to take advantage of the growing economy, which they didn’t hesitate to pass along to Procurement & Purchasing pros.

Now, for some, it’s payback time.

One factor that’s working in your favor: Many suppliers implemented “escalator clauses” in contracts, so they could jack prices based on economic influences.

Now, those same economic influences are driving contract prices down.

If you’re feeling the heat, you’re not alone.

Among the findings in a recent survey by CPO Agenda magazine, procurement managers have:

• felt increased pressure to decrease supply costs — 76%
• more closely scrutinized the financial stability of suppliers — 76%
• asked for price cuts — 73%
• more closely monitored a supplier’s performance — 72%
• switched to cheaper supplies/services/products — 30%
• volunteered to pay earlier in return for a discount — 27%
• directly supported a supplier’s finances — 19%

Tags: costs, procurement, purchasing, suppliers