I can’t believe it! The head of production and one of our key contractors for supplying and installing machinery are collaborating with one another? And they are collaborating with one another against procurement and against me? How did this happen? In my naivety, I assumed that the head of production and head of procurement would fight together to achieve benefits for Heartland Consolidated industries. How silly of me. I knew there was a problem in internal communication. It seems we are in the process of investing heavily in a new processing plant—a major CAPEX [capital expenditure] project for us. When I reviewed it, comparing some investments to those we did at Autowerke, I saw that the price was much too high. Now I know that we can’t completely compare a car plant with a food processing plant, but based on previous experiences, I have developed a skill in feeling out price levels. Additionally, the second-ranked supplier is offering a similar processing plant solution for 75% of the price! Amazing!
KeywordsProcessing Plant Negotiation Strategy Supply Market Food Processing Plant Productivity Lever
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