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Apr 19, 2009


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Hi Rosemary,

You're preaching to the choir :) Feel free to share these views with Kevin O'Marah:



I agree with Rosemary. Cash may be king right now, but developing closer integration with your supply chain partners offers long-term potential, as opposed to squeezing the life out of everyone for the sake of a low-margin deal,

Ralph Burton

I think you are spot-on with your comments and your chart. Over the past year, I have seen two of my clients ask for price cuts and other concessions from 3PLs and then offer nothing in return. It would have been easy enough for them to offer to provide a quarterly forecast, faster payments, referrals, etc.

It feels like companies are moving backward into arms-length transactions instead of forward into collaboration. That is not the right direction.

Brian Dietmeyer, an expert in business negotiations, says, “Never concede, always trade for something.” He’s right. 3PLs and other outsource service providers should be asking for trades such as faster payment terms, more electronic exchange of information, etc., not conceding just because their customer has asked.

Rosemary Coates
Blue Silk Consulting

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