Purchasing Managers Share Strategies on Pricing, Vendors, and Inventory Challenges

One of the most prominent topics was the comparison between replacement pricing and average pricing. Members highlighted how volatile tariffs have complicated the quoting process, making it increasingly difficult to provide customers with timely and accurate numbers.
 

Commodity pricing also received significant attention. The group explored whether companies are basing their prices on MAC (moving average cost) or on replacement costs. The consensus among purchasing managers on the call was clear—most are relying on replacement costs as their standard practice.
 

The conversation then turned to the role of third-party pricing vendors. While many members see value in these tools, several shared that accuracy can be a challenge. Even when leveraging vendor data, purchasing managers noted they often conduct their own monitoring to validate and supplement the information, ensuring their teams have the most reliable figures possible.
 

Another area gaining traction is VMI (Vendor-Managed Inventory). Members who have adopted this approach shared that they regularly hold quarterly meetings with their providers to align on minimum and maximum pricing thresholds, which helps foster transparency and consistency.
 

The meeting concluded with a thoughtful discussion around the importance of “shelf costs.” One member shared a custom report they use to track the original purchase price of an item against its current market value, providing greater visibility into price trends over time.
 

To learn more about ASA’s CONNECT communities and how they bring members together to share experiences and best practices, please visit asa.net/Events/CONNECT.