QUESTIONS AND ANSWERS

Cost savings are the most recognized. Vary from 10 to 60 percent. Supplier changes are largely not necessary; however, the option is there. The qualified supplier infrastructure developed over the last 30 years is quite impressive.

What stakeholders appreciate the most is the outside perspective of an expert on how they are really doing (without pulling any punches) and how I’m going to elevate their plastic raw procurement practice to the best in the industry. The solutions are not formulaic. Your situation will require unique strategies on a per-product basis. WE WILL PICK A DIRECTION AND IMPLEMENT LIKE THERE’S NO TOMORROW!

When applying my expertise, I will always have a more “fiduciary” approach where what’s best for the molding company is what’s best for me, regardless of compensation.

Only two people will have direct involvement. You will be dealing with me and, Lesley Collins – my immediate assistant for the last 25 years – through every element of the evaluation, procurement strategies, and implementation process (with stakeholder consent) on an ongoing basis to ensure you are continuously operating at your maximum buy-side performance.

On a side note, Lesley has a British accent; sometimes the prosody makes it challenging to understand. I’ve tried for years to get her to pronounce the ’r’ but lost the battle. You can handle it! 

There are five elements: 

1. An objective and insightful analysis
2. Development of procurement strategies for chosen raw materials
3. The implementation of procurement strategies (with consent)
4. Supplier agreements in writing.
5. Ongoing supplier management

I do not, and here’s why:

• I am fiercely protective of my client’s confidential information, as I will be with yours.
• My clients are not signed up to give advice. When it has happened, it is harmful being what strategies worked for them will not work for you. I provide per-product customized solutions that are unique to each raw material circumstance.
• My procurement practice is exclusive to the industry. Connecting with former clients could reveal some of my very best manufacturing and distributor contacts, which I will not expose.

Our professional fees are one of the more engaging and time-consuming questions. Once fully understood, the majority openly embrace the structure due to the gains realized and the HOW behind them.

First, I do NOT charge a per-hour fee for my expertise and responsibilities. It does NOT apply to a performance-based, recurring industrial environment – much like your precious client base needs your focused attention.

The merit of the working model and your results is established on an outcome-based participative style. A fee per hour for such would be staggering, untraceable, and lacks measurable accountability. It does not and will never work in this capacity.

For decades, I have developed advanced plastic procurement expertise for molders of all sizes and scopes nationwide. It is a value-based compensation model where projects (individual raw material purchases) are strategically reduced, and the results of my performance (your savings) are shared nominally with me. As the company’s performance is enhanced, the reward for those improvements (cost reductions) is self-funded and optimizes ongoing organizational goals.

There is zero risk, and the headcount is often reduced. I don’t wish that on anybody, but business owners face volatile dynamics that are rarely realized, and it’s up to them to make those decisions.

There is a small upfront fee for the initial evaluation of your raw materials and suppliers. This is part of the benchmarking process and depends on how many products are being reviewed. The reason is not cash flow – the amount is irrelevant. Instead, it allows me the freedom to be completely transparent with you, not harboring any fear that you’ll be upset with my findings and withhold payment. It helps me identify clients ready to take serious actions to gain and maintain complete control of their raw material purchases and the company’s destiny.

We bill monthly for our services. The small upfront fee is subtracted from future professional fees. Again, all pale in comparison to the gains!

New business opportunities requiring quotes for raw materials not a part of the current portfolio require a fixed professional fee for that service. The WHY: It is also very time-consuming. I have always made this proactive option available.

The reason you may not be securing more business: Plastic buyers typically call one, two, or maybe three suppliers they know and use “the best price” for your team to quote. That does not give your company any advantage in securing new business by using some random price provided! You need a strategic buy-side approach here, also. You worked very hard to get the RFQ from your client and deserve aggressive material costs from the onset. Yes, you will close more sales because your raw materials account for such a high percentage of your costs.  If material costs fluctuate to your advantage, I can straighten it out for you.

“My practices and the results of such are easier said than done. The strategic element of this facet of your business is vital, involved and consumes a lot of resources. Having an active business partner – less all the equitable involvement – who is a specialist incentivized to perform in such an important space – much like sales – is a progressive realization many business owners have enjoyed for years. 

Most of my clients are ideal and have become friends, and I am very grateful for them. They are hard-working visionaries, intelligent, funny, and really care about their companies and employees. They have allowed me to build a thought-leading, strategic procurement practice, and there is no feeling quite like having such a significant and lasting impact on their behalf. It has been a surreal experience, and I also look forward to working with your company.”

 Regards,
Joe Dobosz
Direct: 313-488-2514 
jdobosz@lexicontaxstrategies.com