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A supplier you’ve been collaborating with for years announces an increase in their prices. What do you do?

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Question added by Kimberly Valles , Editorial Coordinator , Khaleej Times NewspaperSocial Media Management; measures audience
Date Posted: 2017/01/24
Raghdaa Al Sebay
by Raghdaa Al Sebay , Regional Procurement Supervisor - Starbucks (Bahrain Qatar & Egypt) , Al Shaya Group - Starbucks

Since dealing with the supplier for so many years, Will discuss with the same supplier the increase in prices and introduce for them our historical purchases and the total deals amount, then convince them to remain on the same old prices as they are one of our preferred suppliers.

Fawaz Abdalhadi
by Fawaz Abdalhadi , N\a , N\A

Communicate with the Supplier to understand the reasons behind his announcement. Negotiate an ambicable solution and analyse how will this affect the operations.

Anooja Sanghavi
by Anooja Sanghavi , Customer Service Improvement/CSI Specialist , Hansgrohe

Sometimes the supplier's sudden business trends may demand a price increase. In that case we can find some other supplier that offers a lesser price, or maybe we can discuss with the supplier and fix a deal price that will be beneficial for both the parties.

Rineesh  PM
by Rineesh PM , Cluster Manager, Logistics , Nestle India Ltd

In a company the role of a purchase Manager is to get the materils with required quality in maximum cost effective manner. If there is change in price in  existing vendor, check the possibility of getting material with the same quality in less rate. But the priority should be the consistency of the Quality in products

Deleted user
by Deleted user

i have to discuss with him to take intoconsideration the years we are dealing in order to avoid such increase 

Salesh Kumar
by Salesh Kumar , Procurement Manager , The University of the South Pacific (USP)

First you need to understand why the suppleir has announced an increase. You need to than understands the factors behind causing this change. Once established you need to than see how other suppliers are reacting this increase in price however every opportunity should be given to your main supplier to continue trading.

You will not want to risk in losing the many years of relationship due to marginal chnages in price. Its hard to build a good relationship the supplier, it has to be seen from total concept perspective.

Piotr Piotrowski
by Piotr Piotrowski , Supply Chain Lead , Qatar Shell

Check the historical prices, compare the prices on the market. Check the price indicators for ex. raw material indexes. Benchamrk suppliers

Gina Divino
by Gina Divino , Logistics Coordinator , Goodrich Trading LLC

First review the market situation and source out new supplier with same quality and offerf the same credit facility or as we say that we have a comparative date before we make negotiation with our old supplier. Even that they are not increasing their prices we have to review the market quarterly or monthly for us to have an idea on the prices.  But then we still keep a good relations with our supplier. 

Elvis Lumacad
by Elvis Lumacad , Senior Accountant , Wempco Steel Mills Company, Ltd

Verify if there is a valid reason for the proce increase- wether market driven or not.

Compare prices in the market if reasonable with other business establishments.

Rishikesh desai desai
by Rishikesh desai desai , Site Engineer , SHAKS ASSOCIATES” – Engineering & Contractors

At first i will observe the market situation after the observation i will go through a comparative study based on demand. if there is speculation i will gop for negotiation if not i will start working on the another supplier

Bilal Abbas
by Bilal Abbas , Logistic Manager , Arabian Roots Group

Communicate with the Supplier to understand the reasons behind his announcement. 

Check the historical prices, compare the prices on the market. Check the price indicators for ex. raw material indexes. Benchamrk suppliers 

Negotiate an ambicable solution and analyse how will this affect the operations.

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