When financial markets are in a crisis and the rest of the economy is starting to slow down, it is good time to get prepared for the purchasing opportunities ahead. The largest prospects for better deals lies within industries that are more cyclical than others i.e. their revenues and profits have larger swings others. The things that consumers and industries cut down on first are the things that either are related to expansion of the business or that can just wait. Examples of such purchasing categories are:
- Construction
- Heavy equipment
- Raw materials
- Other process industry goods
- Marketing
- Temporary labour
- Other professional services
- Travel
So if you are not bound into long term agreements in these categories, it could be worthwhile to have a closer look on them over the next 6 months.
October 1, 2008 at 6:36 am
Managing Through a Downturn:
A guide for CEO’s, CFO’s and purchasing leaders on Surviving the Tough Times though Procurement Excellence
What’s in it for you? Create opportunities to outmaneuver your competitors by building sustainable competitive advantage, and prepare for the next growth phase.
Read more in the July/Aug edition of “Transform” on http://www.purchasingpractice.com/information
October 1, 2008 at 7:59 pm
This is surely THE hot topic of the moment; almost all of the leading purchasing and supply chain blogs have addressed the issue in the past few days:
Spend Matters here:
http://www.spendmatters.com/index.cfm/2008/9/30/How-Can-CPOs-Best-Weather-the-Down-Economy
and here:
http://www.spendmatters.com/index.cfm/2008/9/29/Treasurys-700-Billion-Sourcing-Challenge–Is-it-Reverse-Auction-Time
Supply Excellence offer this:
http://www.supplyexcellence.com/blog/2008/09/29/bailout-reverse-auctions/
And finally E-sourcing Place offer this piece of advice:
http://esourcingplace.com/2008/10/01/on-the-paulson-us-treasury-reverse-auction-process/
November 4, 2008 at 12:07 pm
[...] anything purchasing should play a bigger role – we have previously covered some of the short-term opportunities that could be considered in periods like this but I think the [...]