To meet the management's expectation of reducing MRO purchasing costs by 5%, the best approach for the procurement team is to collaborate with the current supplier to develop a cost-reduction solution. This method fosters a partnership and encourages innovative cost-saving strategies without compromising service quality.
Demanding a cost reduction (Option A) could strain the relationship, while sending out an RFQ (Option C) might lead to changes in supplier relationships and additional transition costs. Conducting a root-cause analysis and then negotiating (Option D) is a good practice but may not be as immediate or collaborative as working directly with the supplier to develop a solution.
References:
* Supply Chain Management Practices
* Cost Reduction Strategies in Procurement