Engineering Cases
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It means that there is a lot of risk.

2023-03


Such a significant price reduction implies significant risks. Procurement needs to analyze risks, enable company parties to understand these potential risks, and supervise quality control. The procurement department proposes this insurance strategy to achieve their own promotion goals, assuming that other departments are aware that it is a mistake plus a mistake. In the words of a professional, do not think of others as gods, believing that they all have the ability to be proactive, but rather try to be as close to God as possible.
The most crucial thing is that the procurement did not attempt to collaborate with suppliers to solve the problem, but instead pushed the problem onto the supplier. His problem was solved, and the problem with this supplier came up. In the end, it was still up to the purchaser to pay the bill. The procurement manager creates more problems than solves them, which is precisely where the procurement manager is derelict.
Reducing costs is a major task in supplier management, but the key is to be able to stop at a moderate pace. Large companies often lower prices for small suppliers like water in a sponge, which can be squeezed out most of the time. However, when squeezed to the extreme, other problems will arise. Strong promotion is not a method of jointly solving problems, but rather pushing the problem onto the other party. It is not impossible to use it by chance, but when used systematically, chance becomes inevitable, and it is also a matter of time before suppliers have problems.
In addition, there is nothing wrong with considering promotion. 'Soldiers who don't want to be generals are not good soldiers,' but we still need to talk about methods and methods. As a professional said, the most important thing to be an excellent purchaser is to overcome the demons of the heart, not to sell one's conscience for money, and not to harm the legitimate interests of suppliers for promotion. That's the point.

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