A manufacturing business can have a capable purchasing team and still have supplier expenses that deserve another look. The useful starting point is a focused review of significant recurring spend, with attention to the categories that have changed or have not been tested recently.
Start with expenses large enough to matter
Packaging, freight, utilities, technology, ingredients, chemicals, and other raw materials are potential starting points. Prioritize by addressable spend and realistic opportunity rather than by which category happens to be easiest to quote.
Ask three questions
When was this category last competitively tested? A routine renewal or incumbent negotiation may provide little information about credible alternatives.
What has changed? Volumes, specifications, delivery patterns, service needs, and contract terms can change the economics even when the unit price appears stable.
What would it take to implement an improvement? Switching costs, qualification work, inventory, and operating risk belong in the assessment from the beginning.
Use a consistent baseline
Compare equivalent quantities, specifications, service requirements, and commercial terms. Separate recurring savings from one-time credits or temporary concessions. For a freight comparison, include relevant fuel, accessorials, and service requirements rather than relying on a base rate alone.
Prioritize before launching an RFQ
Some categories deserve immediate action. Others should be revisited at renewal or after better information is available. Some should be left alone. A useful assessment helps management distinguish among those choices.
W&W helps businesses establish the baseline and identify practical next steps. Book a conversation with Rick.