Resisting the killer deal
13 September 2012
Professional purchasers are increasingly gaining the upper hand at the negotiating table. Here’s how McKinsey consultants John Abele, Eric Roegner, Brian Elliott and Ann O’Hara are advising suppliers to respond
There is a killer on the loose near the start of the value chain. Suppliers of basic materials have seen tough times as their own suppliers consolidated and customers squeezed their margins. Now some of those customers are using a “sourcer” - a kind of sophisticated professional purchaser - who is threatening to rub out the meagre margins that remain.
Armed...