>> I think this problem actually requires a two part conversation.
So, I think the first part is an outward facing conversation with a long time
supplier.
And I think that can be a simple as, hey I been having a conversation with
the product team and we have some concerns about cost.
And we're wondering if there's actually any wiggle room on your side.
Is it possible for you to do something with us?
It's not at all necessary to lead with a threat or lead with the, you know,
maybe we can get around your patent.
It's really not their concern as to why you have a product,
why you have an issue with the cost of the widget.
You might just lead in a friendly way saying hey, got some issues with the cost,
wondering if you might be able to do something about that.
And then that's followed immediately with a set of conversations internally.
So, one of them is with the R&D saying, you know,
this thing we're considering replacing is patented.
Are we really really sure that we are able to do this without stepping on any
intellectual property?
That itself is a complicated subject.
But more than that I think we have to have a conversation with the product team,
maybe the marketing team.
Saying okay it is perhaps possible to replace this widget with one
of lower cost, but are we optimizing a tree but messing up the forest?
Is the cost of this widget the only thing we really care about?
Do we value the relationship with the supplier?
Have they been a good partner?
Do they deliver things on time?
If we make a change in the specification of the product,
do they work with us as a partner?
If we overnight ask for a doubling of the supply in the supply chain,
do they actually show up and do it with us?
If we were to replace this supplier to get a widget with a slightly better cost,
are we actually maybe incurring some more costs?
Because we're going to have to build another set of relationships with whoever
makes this thing for us, even if it's our own team.
So, two sorts of conversations.
One, looking outward, maybe can you do this for us in a little cheaper manner?
One looking inward, how serious are we that just reducing the cost of this
one part is the only thing we care about in the life of this product?