Supply chain video: If you want to re-negotiate the terms with suppliers, the moment is now!

Filed in archive Supply chain video on July 6, 2009

If you're looking for cost reduction or get better prices in your supply base, the moment is now. This is the main message in this part of the presentation by Professor Rob Hanfield. Typcally the options which company have in front of them include the following:

- Discuss the payment terms
- Open lines of credit for the supplier in exchange for lower prices
- Extend the payment terms (if it doesn't kill the supplier:))




In applying these strategies, a main element companies should consider is human factor: In the crisis situations, people feel frozen. They don't want to do anything because they are afraid of the consequences but companies should try to facilitate the process and help people do something about downturn. The task is not easy though!