Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How a Buyer Cut Costs with Supplier Savings Gainsharing
In this episode of The Buyer's Side, Lucas and Luna explore how a mid-sized manufacturer in the Midwest cut procurement costs by 12 percent through a supplier savings gainsharing program. Instead of squeezing margins, the buyer offered suppliers a share of verified savings from joint cost-reduction initiatives. The hosts break down the mechanics: setting a baseline, measuring savings, and distributing the split. They discuss how this approach shifts the supplier relationship from transactional to collaborative, and the risks when trust breaks down. With real numbers and a concrete…
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