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Your Supplier Agreements Might Be Costing You—Here's How to Fix That
If you haven't renegotiated with your suppliers lately, you're probably leaving serious money on the table. Markets shift. Prices change. But many businesses stay locked into outdated terms, and it quietly erodes profits month after month.
Case Study: Boosting Margins by Rethinking Supplier Agreements
We worked with a company that hadn't touched its supplier contracts in years.
Between creeping prices, rigid payment terms, and lack of competitive benchmarking, their cost of goods sold (COGS) was eating into profits fast.
So we helped them conduct a full supplier audit.
Most owners don't realize that supplier contracts are negotiable leverage points, not just fixed expenses.
P.S. That business now saves over $80K annually—money they're now using to fund expansion into two new markets.
The Strategy
Bulk Discounts
Consolidated purchases to negotiate volume pricing
Extended Payment Terms
Improved cash flow by spacing out payment windows
Competitive Sourcing
Explored alternative vendors to ensure best-in-class value
The Results
Lower procurement costs
Direct reduction in expenses through strategic negotiation
Better cash flow
Improved financial flexibility through optimized payment schedules
Increased profit margins
Higher profitability through reduced cost of goods sold
Stronger vendor relationships
More flexibility and better terms through improved communication
Why Supplier Terms Matter
Want to See What a 4% Drop in COGS Could Do for Your Company's Valuation?
1
Reduces COGS directly
Every percentage point saved goes straight to your bottom line
2
Improves working capital
Giving you more to invest in growth
3
Enhances operational stability
With faster turnarounds and more reliability
Smart procurement = higher profits. Let's optimize your supply chain—without sacrificing quality.