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Strategic Sourcing Spend SEGMENTATION, Cross Functional TEAMS, ANALYSING: TCO / Lifeycle Costs, Supplier Market, Item Characteristics and Supplier Costs. OPPORTUNITY Brainstorming, Sourcing STRATEGY Development.

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Old 06-22-2009, 03:31 PM
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Default Furniture removal (annual price increase)

Good day,

I need clarity on the above subject. My service provider has approached me requesting a annual price increase. I am between a rock and a hard place because the cost drivers were not previously clearly stated or defined. My service provider wants a price increase based on year on year CPI. Should I accept this or should I request at this stage for the drivers that make up the price increase? If it is the drivers that will determine the price increase then each driver will have its own weighting = 100%. If it is the CPI I should use then does this mean that the average value year on year is only starting point for negotiations and I should negotiate further??

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