Your key supplier raises prices in FM. How will you maintain service quality within budget limits?
When your key supplier raises prices, maintaining service quality on a budget is crucial. Here's how to balance the scales:
- Evaluate alternatives: Research potential new suppliers for better rates.
- Negotiate terms: Have a conversation with your current supplier about value or volume discounts.
- Optimize operations: Streamline processes to cut costs elsewhere without impacting quality.
How do you handle rising costs while keeping services top-notch? Share your strategies.
Your key supplier raises prices in FM. How will you maintain service quality within budget limits?
When your key supplier raises prices, maintaining service quality on a budget is crucial. Here's how to balance the scales:
- Evaluate alternatives: Research potential new suppliers for better rates.
- Negotiate terms: Have a conversation with your current supplier about value or volume discounts.
- Optimize operations: Streamline processes to cut costs elsewhere without impacting quality.
How do you handle rising costs while keeping services top-notch? Share your strategies.
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Don’t waste your time and study the alternative opportunities, sometimes we get familiarize with average or even below average performance, such a raise in prices will be our wake-up call 📞.. grab your seat and take the opportunity
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In my experience, would start by doing the following ; 1) Analyzing the Impact and Reviewing the specific services or items affected by the price increase and assess how critical they are to operations. 2) I would then calculate the financial impact of the price hike on the overall budget. 3) I would then negotiate with the Supplier and ensure clear communication channels are opened with the supplier to negotiate better terms, discounts, or alternative pricing structures. 4) My next move would be to identify and explore the available alternatives Explore Alternatives and Conduct a cost-benefit analysis to compare switching costs versus savings. NB: Adjust other less critical budget areas to accommodate the new cost
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Negotiate Better Terms Collaborate on Cost Savings Find Alternative Suppliers / Competitive Bidding Optimize Inventory Management Focus on Preventive Maintenance Alternative Materials / Reuse and Recycle Sustainable Practices
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Increase your budget. If the price rises are based on genuine cost increases then that is your new cost envelope. You cannot put pressure on your supply chain that would reduce their profitability. This would put both the quality of the service and the provider themselves at risk. Agree an incentivisation mechanism with the provider to find productivity improvements.
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Address supplier price hikes by exploring alternatives, negotiating better terms, and streamlining operations to save costs elsewhere. These steps help maintain quality on a budget.
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