Supply Excellence

Where the Discounts Are

April 17th, 2007 · by Tim Minahan · 1 Comment · costing, supply market dynamics

Last week, I shared the latest projections from Thinking Cap Solutions which uncovered opportunities to negotiate double-digit discounts on your zinc, copper, and aluminum contracts. And that’s just the tip of the “ICEberg.”

Thinking Cap’s latest Industry Cost Escalation report — the ICE-Alert — identifies 183 industries “where average prices can decline without sending margins any lower than average margin levels held over the past five years.” Suppliers in nearly one-third of those industries could cut average price tags by 5% or more.

Translation: It’s time to renegotiate.

The below chart provides a glimpse into the top 20 commodity sectors where suppliers have the most room to offer discounts. It also offers advice on what type of pricing discount you could negotiate without unrealistically squeezing supplier profit margins.

ICE Alert_Top 20 Negoitation Opps.jpg

For complete insight into commodity market supply and pricing trends, order a full copy of the report at www.ice-alert.com or by contacting ICE-Alert Editor Elizabeth Baatz at ebatz@ice-alert.com.

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1 response so far ↓

  • 1 Supply Excellence » Top Sources for Supply Risk Intelligence // May 31, 2007 at 10:26 am

    [...] Publications and reports: Jane recommends the Economist Intelligence Unit, which offers macro-economic analysis and forecasts on more than 200 countries and eight key industries. This is a must-have for global sourcing organizations looking to captilize on emerging market supply and for hedging risks. (However, in my opinion, EIU’s technology and business process research is often light and misguided in its analysis.) Jane also endorses ISI Emerging Markets, which offers country and industry sector intelligence similar to EIU, and RGE Monitor, which provides timely news and analysis on global markets and risks. To these fee-based information services, I would add the Industry Cost Escalation (ICE) Alert, which provides predictive models on supply and pricing trends. I previewed the ICE Alert in a previous post. For free (yet not as timely) intelligence, Jane recommends the CIA World Factbook, which offers comprehensive country profiles — including geo-political risks. She also endorses Political Risk Services, which is a directory for all sources of country, commodity, and risk intelligence and consultants. It also includes useful user reviews and comments about their own experiences with these sources. I would also recommend the the Bureau of Labor Statistics or the Department of Energy, which offer valuable insights into commodity and labor trends. [...]

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