Article at a glance:

Fighting for your price

Basic-materials companies are bowing to the power of professional purchasers, or "sourcers" in industry parlance. Armed with volume deals and detailed industry analysis, these buyers try to squeeze as much value as possible from their suppliers, at the lowest overall cost. But companies can meet the sourcers on their own terms and restore a level playing field. A first step is to understand how sourcers have changed the game.

The take-away

To counter the growing power of this new breed of buyer, basic-materials companies need to gather detailed knowledge of every sourcer's economics, recognize the value of their own offerings, and be ready to walk away if sourcers demand too much.