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A collapse in demand for goods and services resulting from the economic downturn means procurement professionals must adopt new strategies, say procurement consultants ADR International.

In ADR International’s latest eBulletin CEO Robin Jackson says turmoil in global financial has combined with massively indebted nations, companies and individuals to produce a collapse in demand.

The prospect of looming negative inflation and likely depression means that standard procurement theory, skills and ways of working look increasingly irrelevant, he says.

Jackson offers a series of offensive and defensive tips for surviving the “economic tsunami”.

Purchasers will need to “drive down prices ruthlessly and continuously,” he says. “Remember this is a once-in-a-century readjustment of prices. Only if you are bold and act speedily will your business survive.”

A defensive strategy should include preparing for possible disruption of supply chains resulting from suppliers going bankrupt, economic meltdown of national economies, currency fluctuations and political unrest.

Rebecca Howard, Director of ADR Learning, ADR International’s training and development division, describes the work of US psychologist Robert Cialdini, an expert on influencing skills.

Howard outlines the six ways identified by Cialdini that people can influence each other.

These range from “social proof” – suggesting that you ought to the same as other people - to “scarcity” – the often-used argument that you should buy now because the items you want may be in short supply.

Understanding these techniques can help purchasers influence suppliers to reach agreements positively, Howard says.

She adds: “As the purchaser on the other side of the negotiating table to the expert salesperson, the more you understand the tricks of the trade, the more able you will be to counter them effectively.”

The eBulletin also contains news of the alliance between ADR International and the US Institute for Supply Management to offer procurement training and development.

This means that ADR International is now exclusively responsible for providing all in-company training and development worldwide for the ISM – the main US organisation for purchasing and supply chain professionals.


About ADR International

ADR International is one of the world’s longest-standing global procurement consultancies, established in 1986. It applies its knowledge and expertise to help its clients improve every aspect of their procurement activity. ADR International provides expertise in procurement consultancy, training and development, sourcing, permanent and interim recruitment, technology and audit.
ADR International works with several global corporations to improve their procurement effectiveness. Clients include The Walt Disney Company, Pfizer, Nokia and Alcan and with public sector organisations in local government, policing and the NHS.
ADR International is based in Oxfordshire, UK. ADR International (North America) is based in Ann Arbour, Michigan. ADR International also has offices in South Africa and Australia.

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Tel: +44 (0)208 348 3103 or +44 (0)7906 720141 (mobile)

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