Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How One Buyer Cut Cost Overruns with a Supplier Escalation Clause
In this episode of The Buyer's Side, Lucas and Luna dig into a quiet but powerful lever in procurement contracts: the escalation clause. Instead of another cost-cutting tactic, they explore how one manufacturing buyer used a price-adjustment mechanism tied to input costs to stop surprise supplier surcharges and shave 9 percent off annual spend. They walk through the mechanics—how the clause was structured around a published index, how it shifted the conversation from annual showdowns to quarterly check-ins, and how it protected both sides when commodity prices slipped. Lucas breaks down…
The skinny
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