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Most companies' existing suppliers are not yet on the Web, so purchasing agents see little reason to go there themselves.
Procurement managers often suffer from accusations of favouring traditional process over innovation and existing suppliers over new, better-value opportunities.
M&S said it had managed to boost clothing profit margins by buying fabric from fewer places and getting existing suppliers to move production to lower-cost countries.
That initial deal did not get off the ground, but the firm subsequently found a way in by working with existing suppliers.
Twidell hired a consultant to design the app and manage the process, although he was able to use his existing suppliers thereafter.
Willox said: "Maximising effective competition in the market is crucial, whether it involves bringing on new suppliers or changing the dynamics between existing suppliers".
Similar(31)
"Many people could cut their gas and electricity bills by moving to a better deal with their existing supplier, switching to another supplier altogether, or by taking up home insulation offers.
Many students in rented accommodation think they can't switch, because they don't own the home or they would get in trouble with the landlord if they moved from the existing supplier.
According to Vaasaett, the lower the switching level, the easier it is for the big six to drive through price rises because it suggests customers have a greater tendency to stay with their existing supplier.
The regulator said npower had failed to get enough information from potential customers about their energy consumption to enable them to decide whether it was worth switching from their existing supplier.
A critical benefit of the proximity, the two executives noted, is that the new plant will be able to take advantage of Nissan's existing supplier and distribution network in Mexico.Inside the factory, the two partners also intend to benefit from economies of scale and cut development and manufacturing costs in half.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com