How do you know when to find a cheaper supplier?
Strong supplier relationships are a fundamental part of a smooth production schedule, but the associated costs are also a major part of your production budget. So when it comes time to lower your supplier costs, you have a choice to make. You can either double down on your current investment with your supplier to reduce costs, or you can start your search for a cheaper supplier.
How do you decide when to work with your current supplier and when to find a cheaper alternative?
If you’ve found yourself in this dilemma, you’re not alone. Last year, we found that over 75% of the 1,000+ manufacturers polled in our 2011 manufacturing outsourcing survey plan to cut supply chain costs by either pursuing major cost reduction efforts with their current supplier or by looking for a lower cost contract manufacturer. And with continued pressure to lower costs, this trend isn’t turning around.
We recognize this is a challenge many manufacturers are facing, so we interviewed our experts and came up with Two Ways to Lower Supply Chain Costs to help you through this dilemma. The article provides tips on important factors to consider when deciding whether to stay or leave your supply partners, step-by-step guides for pursuing whichever path you choose and advice on how to make the transition work.
Take a look at Two Ways to Lower Supply Chain Costs to determine which supply chain cost saving tactics make sense for your business.