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Army’s Tank Automotive Command (TACOM). According to the government, “MTM’s subcontract proposal overstated MTM’s cost or pricing data, thereby causing the prime contractor to negotiate and certify the prime contract with TACOM based on inflated costs, which in turn caused TACOM to pay overcharges at the prime and subcontractor levels.”
Or the automotive firms, who watched Tesla with the condescending view that electric cars would just be a fad, until they also realised the true potential. It requires appropriate inter-personal and behavioural skills, as well as traditional skills such as commercial understanding and negotiation.
Even reducing costs often depends more on effective collaboration rather than negotiation in today’s market. To top it all off, extremely tight supply markets have further shifted negotiating leverage from buyers to suppliers. Effectively managing suppliers is now one of the most important factors in organizational success.
With the right technology in place, organizations can automate repetitive, manual tasks and enable staff to focus on revenue-generating work rather than the minutiae of contract negotiation, supplier management, invoicing and other typically manual processes. Chassis Brakes and Meritor Digitally Transform with Ivalua.
Protecting profitability in the face of inflation isn’t about squeezing suppliers in negotiations, but working together to find ways to reduce costs in the full value chain. Being more agile and addressing more strategic objectives requires procurement to be more collaborative.
Cristián Conejero highlighted significant growth and diversification in Latin America, particularly in sectors such as electricity, renewable energy, minerals (primarily copper), metals (including lithium), chemical products, agroindustry, ports, desalination plants, technology, and the automotive industry.
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