Part 1: Unlocking Operational Efficiency through Pooled Minimum Order Quantities
Discover how optimizing piece price through Minimum Order Quantity (MOQ) aggregation (a.k.a., pooling) can help manufacturers avoid high volume thresholds set by suppliers to receive the best price—and instead aggregate the orders across various locations to realize the best piece price. This approach minimizes price variation and enhances procurement flexibility at each location, leading to reduced inventory and negotiated price maintenance.
Part 2: Driving Stability Through Fixed Aftermarket-Only Part Pricing
Explore the importance of fixed and stable pricing methodologies in the aftermarket supply phase. We detail how negotiating a structured framework can lead to predictable aftermarket part costs, thereby enhancing the profitability of your spare parts business. This approach ensures that manufacturers maintain competitive pricing while also improving customer support.
Part 3: Accelerating Supplier Transitions Through Shared Cost Absorption
Learn how shared cost absorption can remove barriers for transitions between suppliers, enabling quicker ramp-up and mitigating the often-costly complexities involved. Our structured approach has led to a significant reduction in transition costs for clients by fostering collaborative relationships with suppliers and having them offset part of the internal transition cost
Part 4: Creating Efficiency Through Fixed Pre-Production Part Pricing Methodology
Understand the value of negotiating a fixed price structure for pre-production parts that streamlines supplier engagement through the product development phase. By fostering supplier collaboration early in the design process, our clients have a clearly defined cost structure that minimizes delays and operational inefficiencies, resulting in reduced procurement cycle times.
Part 5: How Transparent Pricing Models Mitigate the “New Part Tax”
Dive into the concept of Transparent Pricing Models (TPMs) and how they can protect against unjustified pricing increases in new part development. By requiring detailed cost breakdowns, our clients have been able to avoid the infamous new part tax through transparency, ensuring accountability from suppliers.
As you progress through the series, you will gain insights that empower your organization to move beyond only price negotiations and leverage strategic sourcing to achieve long-term success. Stay tuned for each article to discover how Tenet Consulting can help you unlock operational efficiencies and drive meaningful results!
If you’re ready for immediate improvement in your supplier negotiations, contact Tenet Consulting today to start your journey toward enhanced value and sustainability.
