Acquiring people commonly use rate management approaches to obtaining value for money. A common way of doing this is to welcome distributors to bid for your agreement making use of market competition as the way of making sure the “best” price. This is great for low-risk markets where numerous vendors are offered and for “best” markets where information is conveniently offered to everybody. Where this is not the instance and for strategic items for your organization, rate management comes close to hardly ever work. What you require in these scenarios is strategic expense management. Strategic cost management is a technique that includes both you and your vendors collaborating to reduce the cost of the items are services they supply using strategies such as worth design. If you can lower your distributors’ expenses, then they can decrease the acquisition cost to you and still make the very same quantity of profit.