Supplier: Aggregate supplier

Supplier negotiating position: A rate increase is needed because of "cost pressures"

Buyer: Major railroad with substantial aggregate needs

Buyer negotiating position: A rate decrease is needed to meet budget targets

Nuggets found in the supplier’s annual report:

Aggregates are the most profitable business segment for the supplier

Aggregates profitability grew over the past two years

The company wants to grow the aggregates sector and is targeting transportation customers

The results: Armed with the annual report information and findings from other sources the

supplier agreed to a million dollar cost reduction.

Best Practice | Case Study | Commentary

April 5, 2000
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