--- title: How Your Procurement Policy Might Prevent You from Cutting Costs -PPTx description: Pitting suppliers against each other is passé, there's a more effective approach for your company. Learn 5 levels of procurement policy organization in this PPT image: https://www.mtg-transform.com/hubfs/Blog_Images/How_Your_Procurement_Policy_Might_Prevent_You_from_Cutting_Costs_-PPTx.jpg --- [![logo](https://www.mtg-transform.com/hubfs/assets/img/logo.svg) ](https://www.mtg-transform.com/) [![Contact Us](https://no-cache.hubspot.com/cta/default/2185827/baf2fb96-e5b5-470c-81c7-362c037c86e4.png)](https://cta-redirect.hubspot.com/cta/redirect/2185827/baf2fb96-e5b5-470c-81c7-362c037c86e4) # How Your Procurement Policy Might Prevent You from Cutting Costs -PPTx - [**](https://www.mtg-transform.com/) - [Why Companies should not leave China](https://www.mtg-transform.com/blog) - How Your Procurement Policy Might Prevent You from Cutting Costs -PPTx October 3, 2016  by [Renaud Anjoran](https://www.mtg-transform.com/blog/author/renaud-anjoran) ![Two men wearing construction hats and high visibility vest, shaking hands in a factory](https://www.mtg-transform.com/hs-fs/hubfs/Blog_Images/How_Your_Procurement_Policy_Might_Prevent_You_from_Cutting_Costs_-PPTx.jpg?width=12&name=How_Your_Procurement_Policy_Might_Prevent_You_from_Cutting_Costs_-PPTx.jpg) In most product categories, the prices of China-made goods goes up every year. This trend has been going on for years, and it is reaching the point where many importers are re-evaluating their overall approach. Should we find new suppliers in Vietnam? India? Closer to our country? These questions often lead nowhere. **Instead, there is a way to cut 10-40% of your total costs, by adjusting your procurement policy and working differently with your suppliers.** Most purchasers think this is impossible, yet some companies have achieved this level of savings, as we detail in our new presentation: "How Your Procurement Policy Might Prevent You from Cutting Costs"... ### **Reducing the total cost of ownership by up to 40%, while still buying from China. Is it possible?** Different companies work in unique ways with their suppliers, and some of these approaches might make sense for your company. To explore the different options and choose a procurement policy that fits your goals and your specific situation, CMC have prepared a presentation that distinguishes among 5 levels of maturity: #### "[How Your Procurement Policy Might Prevent You from Cutting Costs](https://www.mtg-transform.com/how-your-procurement-policy-might-prevent-you-from-cutting-costs-ppt)" In this presentation we detail the differences between the 5 levels of purchaser / supplier cooperation.  ### **Experts estimate that going up by one level in your procurement policy brings in savings in the order of 10-15% (10% for simple products, 15% for complex products).** **![savings from change of procurement policy](https://www.mtg-transform.com/hs-fs/hubfs/Blog_Images/savings_from_change_of_procurement_policy.jpg?width=870&name=savings_from_change_of_procurement_policy.jpg "savings from change of procurement policy")** If you want to know if this is applicable in *your company*, this presentation is for you. The FREE presentation will help you answer the following questions: - Should you work with many suppliers, or a few key suppliers? - How closely should you work with your suppliers? - What approach to adopt for different types of product categories? What to do for highly industrialized productions vs. more simple and more labor intensive products? - What typical benefits (cost savings, but also innovations and added value) can you expect for each of the 5 levels? - What challenges and downsides can you expect at each level? - How does your [procurement ](https://provprocure.com/global-procurement/)department need to be organized at each level (per category, cross-functional projects…)? - What experience do purchasers need to have at each level? - Is your organization ready to, and capable of, changing its approach?   ### **Take action today** As we wrote above, total costs can be cut by 10-40%. And, at the same time, suppliers can add value by co-investing in materials, technology, and/or product innovations. Many purchasers will not believe these numbers. Yet we cite serious sources and successful cases of companies that have reaped those types of benefits. **Are you ready to get your copy? Just click the button below to request your free download!**  [![New Call-to-action](https://no-cache.hubspot.com/cta/default/2185827/8d37cece-4c81-47cf-adf7-119ca375860e.png)](https://cta-redirect.hubspot.com/cta/redirect/2185827/8d37cece-4c81-47cf-adf7-119ca375860e) Topics: [Procurement](https://www.mtg-transform.com/blog/topic/procurement), [Cost Reduction](https://www.mtg-transform.com/blog/topic/cost-reduction) ![Renaud Anjoran](https://www.mtg-transform.com/hubfs/renaud_profile2.png) ### [Renaud Anjoran](https://www.mtg-transform.com/blog/author/renaud-anjoran) 15+ years experience in China manufacturing. Founding Partner & Thought Leader, Manufacturing Transformation Group (MTG). Worked with hundreds of factories across China, Vietnam, and Southeast Asia. Certifications: ASQ CQE & CRE; ISO 9001 & 14001 lead auditor. Author of Quality Inspection Tips blog and host of China Manufacturing Decoded podcast. [**](https://www.linkedin.com/in/renaudanjoran/) ### Subscribe to receive MTG tips & resources ### Related articles Why You Need the Bill Of Materials (BOM) of Your 'Made in China' Goods Renaud Anjoran Read More How Category Management in Procurement Can Cut Total Cost of Ownership Renaud Anjoran Read More A Look Into The Ikea Procurement Policy & Production Model In China Renaud Anjoran Read More [![logo-white](https://www.mtg-transform.com/hubfs/MTG/img/logo-white.svg "logo-white")](https://www.mtg-transform.com/) [** ](http://www.linkedin.com/company/3268172?trk=vsrp_companies_res_name&trkInfo=VSRPsearchId%3A63606291375275258275%2CVSRPtargetId%3A3268172%2CVSRPcmpt%3Aprimary) [** ](https://www.youtube.com/channel/UCJmBQ1Ffo0wrpDM49XWIgdA) [contact@mtg-transform.com](mailto:contact@mtg-transform.com) © 2026. All Rights Reserved. ```json { "@context" : "http://schema.org", "@type" : "Article", "author" : { "@type" : "Person", "name" : "Renaud Anjoran" }, "dateModified" : "May 12, 2023, 10:08:40 AM", "datePublished" : "September 27, 2016, 12:10:48 PM", "description" : "Pitting suppliers against each other is passé, there's a more effective approach for your company. 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