Tuesday, January 8, 2019

Relationships remain tense between customers and suppliers - en.live-feeds.com



A study conducted by AgileBuyer and the National Purchasing Council reveals that more and more companies are experiencing unbalanced commercial relations with their suppliers despite the economic improvement of 2018. The report also underlines the new importance of "Made in France". for buyers.



The ninth edition of the Procurement Trends and Priorities Study, conducted by AgileBuyer Consulting and the National Purchasing Council (NAC), was released this Tuesday, January 8. Among the many results of this study, two major findings stand out for 2019.


Unbalanced relationships between buyers and suppliers


More than half (54%) of the purchasing departments of the companies surveyed believe that they experience unbalanced and unfavorable relationships with some of their suppliers. This phenomenon highlights the difficulty that buyers may face in the face of sellers who sometimes abuse their position. " With the economic recovery, we found ourselves last year in situations where buyers were forced to seduce their suppliers to be better servedrecalls Olivier Wajnsztok, associate director of AgileBuyer. This is called calinotherapy. This year, we observe that some suppliers go much further, with price increases inopportune, the threat of failure of delivery ... It was felt, but it had never been measured. "


This type of practice is mainly encountered when purchasing raw materials (excluding steel and chemicals), but also from software vendors. " This last area is monopolistic or oligopolistic, says Olivier Wajnsztok. There are too few offers because when there is an innovation, it is bought by large groups. "


" There are also a significant number of cartels that were discovered in 2018 ", points out the associate director of AgileBuyer. These agreements are defined in the study as " agreements between companies that decide not to compete ". The report explains that these cartels allow suppliers "Agree on prices, consult each other in order to call for tenders, limit production in order to keep control of supply, or even to distribute the market and customers between different suppliers in the same sector ".


"Made in France" becomes a criterion of choice of supplier


Another observation of this report, the "Made in France" became " a criterion of attribution of the business For a majority of buyers (53%), particularly in the hotel and restaurant, fashion and luxury sectors. This attraction for local buying in inter-company exchanges is a novelty. " A few years ago, companies did not measure the share of what they bought in Made in France ", Says Olivier Wajnsztok.


Reducing costs is the priority of business buyers for 2016


Today, the situation has changed and the Associate Director of AgileBuyer identifies four main reasons that made local purchasing a decisive criterion in the choice of suppliers. " First, buying in low-cost countries is becoming less attractive because prices are rising. Secondly, there is a strong tendency towards protectionism in some countries, which creates the risk of introducing additional taxes on certain products. Buy in France is then to guard against this. The third reason is that these local purchases must avoid the risk of supply disruption. "


Finally, the last reason is better known. Individuals prefer more and more products "Made in France" in their consumption. Local buying is therefore a good selling point for businesses, which are now more accountable. Especially since only 10% of them believe that buying French is a constraint due to too high a cost.


Clément Grillet


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