Ramming the Supplier Savings Iceberg

Ramming the Supplier Savings Iceberg

The Iceberg of Supplier Opportunity theory holds that only five to ten percent of efficiency is gained via price, and it’s the area of least resistance and work. The ninety to ninety-five percent (hidden costs) of the so-called new frontier of supplier explora­tion is bottom-line, total-cost-of-ownership savings of using a pre­ferred supplier. This is the one area of the greatest resistance and opportunity. This is the realm of relationship building that requires increasing communication and the building of trust. Flexibility in supplier relationship building is a must.

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