Reduced price or total cost
This can include a reduced acquisition price, lower Total Cost of Ownership (cost to acquire, use and dispose), or savings through exchange rate fluctuations. It is important to remember that the amount of buying power we have will always determine how low the price or total cost will be. Therefore, the pursuit of additional value is always beneficial in ensuring we have secured what we perceive to be a good deal.
Securing greater value from the supplier or the supply base
This includes additional benefits beyond reduced price or total cost that are worthwhile and can bring value to us. Benefits might include securing additional products or services at no added cost, improved efficiency, sharing of resources, collaborative working, or reduced time to supply. Working closely with our key suppliers can often lead to the creation of new or enhanced products, features or services that can stimulate new or increased demand from our customers.
This benefit is concerned with reducing, removing or being prepared for any risk that could potentially hurt us, cost us, or damage our brand and reputation. Examples might include supply failure or delays, loss of competitive advantage, price or cost increases, and quality failures or latent defects.