For those of you who need one, a bad economy is a great excuse to beginning procurement negotiations with your suppliers. But a bad economy also means that some financially weaker suppliers may be on the brink of going out of business.

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So do you negotiate with these suppliers to support your cost savings goal? Or do you let them keep a little juice in their pricing so they are around for you in the immediate and long-term future?

The answer is: “it depends.”

Debbie Wilson of Gartner posted on her blog an excellent entry entitled “Is Chasing Deflation A Good Idea?” about this very topic. She makes some thought-provoking points and I added my two cents into the comments.

I recommend that you give it a read and, if you’re brave, enter into the discussion as well.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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