We help Supply Chain Professionals succeed in negotiations.
Established in 2001, ProPurchaser has grown to become a trusted resource for thousands of Procurement Professionals. We track prices for hundreds of commodities and other cost drivers that affect suppliers’ production costs; and send out alerts as changes occur. When suppliers’ costs fall, our members use this information to negotiate lower prices; when suppliers’ costs rise, they use it to fend off unsupportable increases. ProPurchaser contains data, tools and resources that allow our members to speak with authority, improve their position, and achieve their negotiations goals.
- Some of the most experienced procurement and purchasing professionals use ProPurchaser to achieve cost transparency - and more collaborative relationships with their suppliers. Read this true story about Formula-based pricing from a true ProPurchaserProPurchaser.com on LinkedIn: "Member Success Story: Formula-based pricingIn addition to being a trusted resource for cost transparency, ProPurchaser is a large community of experienced procurement professionals with amazing real-world expertise. The following is a ProPurchaser Member Success Story:“A key (sole source) supplier wanted to change their contract with my company to a formula-based pricing model. The supplier provided their cost components as well as the formula they would be using. I was able to find (nearly) all of the cost input elements in ProPurchaser and built my own model to mirror the supplier’s, including resins, transportation/fuel and the Consumer Price Index (CPI). The supplier agreed to the model. “In the second year of the contract, the supplier approached me and requested a 10% price increase. I validated the increase request against my ProPurchaser-based model and saw that only a 1.5% increase was warranted. The supplier (who has considerable leverage because they are a sole source) and I agreed to a number far below the originally requested 10%. Overall it was a collaborative process, and the supplier has since ended their use of the formula-based pricing model, although I still use my should cost model to validate their prices.”"May 6, 2019: ProPurchaser.com posted images on LinkedIn
- As procurement professionals, we need to trust our suppliers: their products, delivery, quality and service. If we can't trust them, we probably shouldn't be doing business with them.Trust Your Suppliers, Not Their DataAs procurement professionals, we need to trust our suppliers: their products, delivery, quality and service. If we can’t trust them, we probably shouldn’t be doing business with them.
- While there is usually a lead professional in each negotiation, the whole procurement team needs to be aligned and informed – especially when it comes to understanding the impact of supplier costs.ProPurchaser.com on LinkedIn: "A ProPurchaser member was recently telling us how he uses cost transparency to help his whole team manage spend and suppliers:“I make sure my buyers and the purchasing team are focusing on cost models. I teach them how to negotiate where it's applicable, and feed them information from ProPurchaser to support their day to day conversations. If I know that steel or any given commodity seems to be on an upward trend, I'll let them know that so that if a supplier is arguing with them or telling them there's a price increase that we may not be able to prevent it. Vice versa, if the supplier's saying they need an increase and I'm telling them that all of the relevant commodities are going down, it puts us in a position to steer the conversation in our favor.”"June 12, 2019: ProPurchaser.com posted images on LinkedIn
- Procurement’s job is to inject Cost Transparency into the #negotiation so everyone can win: #procurement gets what they need: a lean, competitive price; and the supplier makes a profitable sale at a reasonable and sustainable margin.
- #SCNR supporter and @ProPurchaser_ President, Rod Sherkin, shares some great insight into how to be a rockstar that makes things happen in the #supplychainindustry...
#LeadershipMatters #supplychainprofessionals #distribution #logistics #inventory @amandamluton…
Join us at MODEX on March 10, 2020 as we celebrate #SupplyChain in Metro #Atlanta!@poweredbymhi @atlchamber @cscmp_atlanta @APICS_Atlanta @SCNRadio @ScottWLuton @BenJammin047 @BackbeatMktg @gregoryswhite pic.twitter.com/TBG51QYYnl— ATL Supply Chain Awards (@ATL_SCA) October 18, 2019
- For a Lower-Carbon Future, Start with the Low Hanging FruitFor a Lower-Carbon Future, Start with the Low-Hanging FruitMany companies have made investments in ‘green’, low-carbon or sustainable sourcing and procurement, and for good reason. Environmentally responsible sourcing is good for business: it can bolster customer loyalty, increase brand value, and boost sales and profits.
- The aluminum producer may close facilities over the next few years as it grapples with slowing economic growth. #aluminum #supplychain #purchasing #manufacturing (WSJ subscription required)WSJ - @MicahMaidenbergAlcoa Plans Up to $1 Billion in Asset Sales Amid Growth FearsThe aluminum producer may close facilities over the next few years as it grapples with slowing economic growth.
- "Building out cost models requires alignment between the big picture and a detailed view. People often take negotiating positions at a higher level, but they need to be able to support those positions with detailed data." https://t.co/HTWHQQfz0y https://t.co/q2fgilk2jT
- The role of a supply chain professional is to be the catalyst that makes things happen. You're the bridge. You are in a unique position to encourage new ideas and creativity. Time to go fishing with SuppliersGoing Fishing with SuppliersOver the last few weeks, we’ve worked our way through the Four Cornerstones for Leveraging Cost Transparency. If you missed any of those articles, you can read them here: Are you following The Golden Rule? Using Should-Cost Models – Actionable Transparency Converting Sales Reps into Champions for Yo
- When a supplier approaches you for a price increase because their costs have gone up, how do you validate the request? Read 'Negotiate with the Right Data' by Rod Sherkin.Negotiate with the Right DataJoin me at ISM 2019 for my session: ‘COST TRANSPARENCY– CATALYST FOR ACHIEVING NEGOTIATING GOALS’, April 9th at 10am ET. Researching suppliers' costs before negotiating prices is a standard best practice in our profession.
- Yet another amazing member success story from the ProPurchaser community! Well Informed Buyers have More Collaborative Supplier RelationshipsProPurchaser.com on LinkedIn: "ProPurchaser Member Success Story: Well Informed Buyers have More Collaborative Supplier Relationships"My suppliers are on notice that I'm an educated buyer. We have a more collaborative relationship because they know I am as informed as they are. For instance, the owner of one of my key suppliers might contact me and say, "You know, I'm hearing rumblings from a factory that something is going on. What are you hearing out there?" And I can say, "Well, here's the little bit I know, what information do you want?" And I'll shoot them back a couple of charts on copper, aluminum, cast iron or something like that. And he says, "Now I'm in a better position to argue myself." In doing that, he’s arguing on my behalf. The role of purchasing isn’t just to beat on the supplier. If you're not knowledgeable, you're not going to get anywhere and that supplier's not going want to deal with you in the future anyway."#purchasing #procurement #negotiation "May 22, 2019: ProPurchaser.com posted images on LinkedIn
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