by Mitchell Rona, Executive Vice President, #GlobalSourcerer
Global sourcing experts often rely on the legacy of the deals made in the past as the benchmarks for planning the future. Most loyal and reliable suppliers will maintain these legacy deals, only asking their buyers to cover the markers of cost, which are visible in the public domain. However, these suppliers may decline to quote new projects to these same customers, because the legacy prices are artificially low, and cannot be matched in the current climate. If they were to quote market value prices for new projects, customers might experience comparative “sticker shock.” This may not be true in all cases, but global sourcing experts with a long historical view are observing these types of changes in the market….