So there are three things you can do
to supercharge savings with suppliers.
Focus on the big suppliers, focus on top management,
and focus on striking a mutually beneficial deal.
So for most companies, 20 to 40 suppliers
account for half of the spend
and this is sufficient to swing it.
Focus on top management, and the deal goes like this.
So you as the CEO, you reach out to your peers,
to the CEOs of your biggest suppliers, and you ask for help.
And help means an upfront commitment by the supplier CEOs
to double savings with you in this period.
And in return, you offer assistance
in improving the profitability of the joint business
for these supplier CEOs.
We at BCG call this a 360 degree program.
It always works.