529: Key Takeaways from ProcureCon EU w/ Helen Mackenzie and Philip Ideson
Art of Procurement
00:00
How to Recover Cost Increases When the Contract Is Expired
The best practices around input costs and you're making sure that we're able to recover increases should prices go back down but I've seen is really when you're accepting a cost increase you're accepting it as a short surcharge rather than a okay the price has changed. So putting it in place is more of a surcharge than allows you to have a governance program around reviewing whether that should still be the case or not. The suppliers benefited from two or three years of higher costs when the input costs actually decreased. Yeah and I think an interesting example as well just around that was about how you could use that to perhaps develop and strengthen the relationship with the suppliers.
Transcript
Play full episode
