WEBVTT 1 00:00:00.360 --> 00:00:02.450 line:15% So there are three things you can do 2 00:00:02.450 --> 00:00:04.960 line:15% to supercharge savings with suppliers. 3 00:00:04.960 --> 00:00:09.330 line:15% Focus on the big suppliers, focus on top management, 4 00:00:09.330 --> 00:00:13.490 and focus on striking a mutually beneficial deal. 5 00:00:13.490 --> 00:00:16.830 So for most companies, 20 to 40 suppliers 6 00:00:16.830 --> 00:00:18.970 account for half of the spend 7 00:00:18.970 --> 00:00:22.160 and this is sufficient to swing it. 8 00:00:22.160 --> 00:00:26.960 Focus on top management, and the deal goes like this. 9 00:00:26.960 --> 00:00:30.200 So you as the CEO, you reach out to your peers, 10 00:00:30.200 --> 00:00:34.230 to the CEOs of your biggest suppliers, and you ask for help. 11 00:00:34.230 --> 00:00:38.790 And help means an upfront commitment by the supplier CEOs 12 00:00:38.790 --> 00:00:42.600 to double savings with you in this period. 13 00:00:42.600 --> 00:00:45.760 And in return, you offer assistance 14 00:00:45.760 --> 00:00:49.150 in improving the profitability of the joint business 15 00:00:49.150 --> 00:00:51.280 for these supplier CEOs. 16 00:00:51.280 --> 00:00:56.150 We at BCG call this a 360 degree program. 17 00:00:56.150 --> 00:00:57.303 It always works.