Your supplier’s price includes the cost of replacing them

Single-source relationships rarely fail loudly. They quietly re-price themselves against how difficult you would find it to leave.

By Steve 5 min read
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The annual supplier review goes well. They hold price, or move it by a point or two, and cite input costs, freight, an index. Everyone shakes hands. The purchasing line in the management accounts stays roughly where it was, and nobody has to explain anything to anyone. The question that review didn’t answer is what that price would be if you were genuinely contestable, if a second supplier could take the volume next quarter without a six-month qualification exercise. In most businesses that have used the same supplier for years,…

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