Setting the Stage
Businesses are always looking for ways to save money. It’s an integral part of any successful business model. But when it comes to savings, it’s not just about cost – it’s also about value. The relationship between cost and value can be challenging to understand, and many business owners and executives struggle to balance the two. Sometimes in an effort to spend less, things end up costing more – in quality, opportunities, relationships, time and ultimately, yes, money.
To get a better understanding of this relationship, we had a conversation with Jay Patel, CEO of Amtech. In our conversation, Jay discussed the importance of prioritizing value and the real savings from doing so.
Value-Based Prioritizing
At its core, prioritizing value means understanding the power of vendor partnerships. The best partnerships can often result in increased efficiency, access to supply chain advantages, and substantial cost savings. Of course, it’s important to remember that all of these benefits depend on the specific product or service being purchased and that the partnership is cultivated to be strong, balanced and transparent.
To successfully prioritize value, businesses should focus on three main goals: efficiency, savings, and quality.
Unlocking Increased Efficiency
Partnering with the right vendor can have a significant impact on efficiency. When you don’t just count on a vendor to provide a service but additionally leverage the vendor’s expertise, they can help increase your efficiency and deliver better results for your customers. At Amtech, we adopt this mentality with our vendors and our customers. We count on trusted partners to help us see what we don’t see, and we strengthen our customers’ positions with strategic guidance and insight whenever we can.
Access to Supply Chain Advantages
Partnering with the right vendor can also give businesses access to supply chain advantages. For example, when the pandemic abruptly impacted everything from supply chain to purchasing, Amtech was able to leverage our vendors’ extensive supply chain network, as well as our partnerships, to more quickly and cost-effectively overcome obstacles. This only comes when you’re looking out for each other.
Substantial Cost Savings
Finally, partnering with the right vendor can result in substantial cost savings. When relationships are strong, negotiations are productive. Longevity (and loyalty!) are rewarded, and fairness rules the day. This is at the heart of “cost vs value” – and let’s keep the cost concept in mind here. Financial savings are top of mind, certainly, but cost savings come when your vendors help you avoid hiccups and obstacles, streamline processes or suggest ideas for improvement.
A Conversation with Jay Patel
In our conversation with Jay, he shares his experiences prioritizing value and reminds us that cost and value are two sides of the same coin. Jay emphasizes that the trust and transparency required to really deliver value are connected to alignment with core values and purpose. In other words, choosing the right vendor should be a conversation deeper than, “so what’s the pricetag?”
Summary and Conclusion
When it comes to savings, it’s not just about cost – it’s also about value. Prioritizing value means understanding the power of vendor partnerships and leveraging their expertise and supply chain advantages to increase efficiency, access to supply chain advantages, and realize substantial cost savings.
According to Jay, the real savings come from prioritizing value over cost.
A special note on quality: it’s important to remember that quality should never be sacrificed to save money. There’s no way you’ll win that battle; eventually, your customers will suffer the most. On the flip side of the coin, when the quality of the relationship drives the quality of services or commodities, the downstream impact on your customers will likely be just as positive.