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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.
Communicate with the Supplier to understand the reasons behind his announcement. Negotiate an ambicable solution and analyse how will this affect the operations.
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.
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
i have to discuss with him to take intoconsideration the years we are dealing in order to avoid such increase
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.
Check the historical prices, compare the prices on the market. Check the price indicators for ex. raw material indexes. Benchamrk suppliers
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.
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.
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
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.
