Supplier Plotting – The Ultimate Strategy for Better Deals
For those who are not familiar with supplier plotting, you are definitely going to have a hard time looking for its meaning in Google. That’s because supplier plotting is another term for a very basic procurement term.
In this article, we are going to uncover what supplier plotting means. We’ll talk about how it can impact the procurement process and how companies and organizations can take advantage of their knowledge in supplier plotting.
Once you’re done reading this article, you should have a clear definition of what to do with supplier plotting
So, What is Supplier Plotting?
In the most basic terms, supplier plotting means how to plot your suppliers. In an even more defined explanation, supplier plotting is to understand price and quantity in the marketplace. This is why supplier plotting is simply just basic procurement process knowledge. People nowadays like to build terms that are very sophisticated to hear, hence the reason why supplier plotting is becoming more popular compared to supply and demand curves.
In the procurement process, we’ve learned about supply sourcing. It’s the simple process of selecting your source of supplies and determining which of your sources you should start procuring materials from. It’s all part of our Negotiation Gamechanger course, so if you’ve missed this in one of our articles, then feel free to enroll and get a refresher course!
The Negotiation Game Changer Certificate Program teaches you:
- the skills needed to drive better, fact-based decisions that ultimately benefit both organizations and its employees.
- a comprehensive analytics skill set that will enable you to achieve deals with results you have been dreaming of.
The Point in Supplier Plotting
Procurement managers know that supplier plotting is very important as a means of getting ready for what is to come. For example, one type of material or supply is very difficult to locate or source nowadays, which is why the prices for this type of material are set too high. Your organization procures the supplies anyway because these suppliers are important for the continued operations of your company.
And then a few months later, the same supplies suddenly come out with a price drop because there are too many supplies for too little demand. This is the perfect time to buy in bulk so you can store these supplies and then use them in the foreseeable future.
Supplier plotting relies heavily on the procurement manager’s knowledge of simple supply and demand. When there are too many supplies but little demand, price drops, and the organization can afford to buy or procure more supplies in preparation for a time when demand is heavy, but there’s little to no supply.
This is where prices often tend to soar high during the procurement process, so it’s always a wise move to watch how much your company is spending.
Procurement Process and Supply Plotting
During the procurement process, supply plotting should happen during the sourcing phase. Apart from finding out which suppliers have the best quality for the materials needed, there should also be data concerning the supply and demand of the said material. From here, the procurement manager can decide how to proceed for the next procurement phase.
In the old days, supply plotting is mostly done on paper. But because of the introduction of e-procurement, even supply plotting can now be done automatically. The e-procurement program has data available for supply and demand; from there, data is analyzed and the program will give suggestions on how to plot the supplies, together with choosing the best suppliers for the materials needed.
Learn more about Supplier Plotting with our Negotiation Gamechanger course!
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