Survey

In spite of high inflation some cost savings were obtained. How much net cost changes in the last 6-12 months did you obtain over or under the budget?

More than 10% under.
1 to 10% under.
No change.
1% to 5% over,
6% or more over.

Most of us tend to use the same strategies and
tactics continually. We tend ..." />

Changing Strategies and Tactics

Date: 03/01/2006

Most of us tend to use the same strategies and
tactics continually. We tend to use what we first
learned or what fits our personality. This is especially true if the methods that we first use prove successful.

However, the same strategies and tactics don’t work with every situation or every supplier. If you insist on using the same methods, you may achieve much less than what is really possible. For example, a very calm and reasoned approach may work most of the time with your best supplier. If the supplier has made a serious error that needs fast action, he may not be aware or understand the importance of acting quickly if you use your usual approach. Showing excitement in your voice, manner, and tone may be what is really required to get the supplier to understand the importance of acting quickly in order to help solve the problem promptly.

Take the same situation where the buyer normally has an excitable demeanor, with forceful speech and manner. He may not get the attention that others would receive who don’t usually act that way. His actions will just seem normal and the supplier may only give a routine response. If the buyer changes his usual approach, appearing calm, with deliberately slow speech, be may be amazed with the results. Suddenly the supplier will realize the seriousness of the situation and speed action to solve the problem.

A common strategy is not requesting bids on items continuously purchased from a good supplier until there is a cause to do so. That cause could be an announced price increase or quality problems that develop. A new strategy of obtaining bids toward reducing costs or improving quality before any problem develops may achieve more than sticking to the old routine.v