Vendor Squeezing

For CIO’s, the natural intuition to cut costs is to squeeze the vendors rate. However, this may backfire as the vendor will be pushed to the wall and may not be able to make his fair margins. This will result in lower vendor interest and involvement thus impacting the overall service levels.

The article “Vendor Negotiation:Squeeze Now, Pay Later” offers an interesting perspective that is a good read for anyone connected with vendor management.


1 Response to “Vendor Squeezing”

  1. 1 Pandu March 25, 2009 at 12:07 pm


    Good article there.

    Thanks for sharing it.


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© Dhandapani Ammasai, 2011. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given with appropriate and specific direction to the original content.

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