What are some of best procurement strategies while dealing with monopoly suppliers?

If they are governmental you have very narrow margin but you can 

electricity  water  sewage and gas

you can cooeperate to improve electricity power factor

you have to work according to peak hours if you have big elcticity needs

 

Or you have to install generators to fulffill the needs and if possible seel the rest to government

 

For fuel if there is a way in your country to import fuel 

 

For your industry if there is any obstacle you can refer to industry mnistry or related vomnerce chamber for suport

 

If it is a private owned  you can negotiatr long term agreementswith reference to I

iinternational indexes and see wheter it is beneficial to look for imported materials if you cannot reach such agreement

Dealing with Monopoly suppliers are most crucial since they are always on upper hand.

- Alway cover each and every technical aspects with them and make sure that they should fullfill committment.

- Try to cover all risks involved.

- Always try to incorporate legal terms & arbritration in contracts which should be favoring you as well. 

- Be specific with Force majeaure clauses as well. 

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In a monopoly/limited supplier situation where you have limited options to buy from, the negotiating power of buyers is likely to be limited as suppliers will have the upper hand and the ability to set higher prices. Due to the difficulties that monopoly situations can present, innovative complex procurement strategies are crucial. Generally, complex procurement deals with products & services that have: • High financial value • High political sensitivity • High environmental risk • High technical risks In this rapidly expanding global economy, it is hardly surprising that many companies are wrought with challenges to reduce the spending on external supplies and services whilst focusing on finding long term partners and suppliers/vendors that maximise efficiency and minimise cost. Developing and achieving complex procurement best practice can be quite a minefield as it demands a whole new approach to vendors/suppliers and significant investment in time, analysis, measurement etc. in a market with limited suppliers/vendors and competition. Complex Procurement & Vendor Management is designed for procurement professionals who want to maximise their complex outsourcing & procurement planning, tender assessment, contract management, negotiation whilst managing the performance of their vendors/suppliers. TEN GREAT REASONS TO ATTEND 1. Get updates on complex procurement trends and leading practices 2. Gain useful tools and learn from real-life experience in dealing with monopoly/limited supplier markets 3. Develop complex procurement framework that ensures alignment with business strategy 4. Risk and risk management as it applies to complex procurement planning 5. Learn to evaluate the conditions of tender and draft conditions of contract for complex procurement 6. Be able to put TCO into practice in SLAs when awarding contracts 7. Delve into the legal and ethical aspects of contracts and contracting in a complex procurement environment 8. Develop a Statement of Works 9. Achieve complex procurement best practice in a monopoly/limited supplier market 10. Implement, measure and manage supplier performance in a complex procurement environment

Monopoly is not ideal for effective supplychain performance. The best way is to have strategic plan to eliminate monopolistic supply in mid to long term by developing alternatives. And at the same time have establish strong relation with the same supplier to have win win situation. However it depend and definition varies in different context of industry and operation. If have only a single supplier and co existence is important , then it should complementary to one another for long term business relation.

Under a monopoly situation a prudent purchaser will always closely study the market demand and supply. At the time of higher demand one should go for other supplier or should create additional stock of materials either from the local market or from different state or country (in case of favourable import policy) though the lead time goes high and inturn company need to stock additional stock  as long the ultimate goal of a purchaser for uninterrupted production is met.