The rise of raw material price is not happy news to anyone. But in my point, this is a golden chance for purchasers to improve their work performance and prove their personal strength.
You must feel confused. The purchaser here refers to the employee who buys for their boss. As an employee, he doesn’t need to consider about the strategic issues such as the subsistence and development of the company, but his everyday work. He has to make sure the raw materials of sewage pump are supplied to the company as usual. The most important task for him is to finish his duty, make sure the sewage pump production process of the company is not influenced by the rise of sewage pump price. That is his contribution to the improvement of core competitiveness of the supply chain of his company.
Normally, when the price of raw material rises, the supplier usually doesn’t deliver the goods on time, doesn’t accept orders. The purchaser finds it hard to talk about price with the supplier, while the production department of his company is pushing him for raw material of sewage pump. If you go to the boss to ask for more budgets, your boss will criticize you. He is surely having a hard time.
But every coin has two sides. This is a challenge as well as an opportunity.
If a supplier proposes a rise of sewage pump price, he is really at a breaking point and has no better choice. The rise of sewage pump price is caused by the general rise of raw material price, labor price and rent of the whole sewage pump industry. You boss must have heard of that too. He has a plan hidden in his mind to deal with the rise of sewage pump price.
But you cannot simply go to your boss’s office with a price adjustment notice from the supplier and tell your boss if he won’t spend more money, the supplier will not give the raw material. That’s too simple and rash for this complex society.
As a purchaser, you should do the following job:
- Get a good knowledge about the change of markets in general. Make sure if this rice of sewage pump price is really inevitable.
- Talk about the rise of sewage pump price with your boss and colleagues in meetings, at work and after work, and forward a plan to deal with this. This step is to make your boss be mentally prepared for this harsh situation in near future.
- Make a detailed check and market analysis when the supplier proposes a rise of sewage pump price. Check if the amount of rise is reasonable.
- Let you boss and colleagues what you have done to prevent this rise of sewage pump price.
Finishing the above 4 points, you have caught this golden opportunity.
