The first and foremost could be comparing the costs by various suppliers and thus bargain further by promising continue order and giving smaller/moderate order against maximum order possible and further placing larger order and bargaining for much more discounts (maximum discount). Another way could be by compromising the quality which is not advised as the product will loose its worth. You can also look for a cheaper raw material being used in the manufacturing of the product but ensuring the quality of the product remains unchanged. Another could be calculating the wastage out of the manufacturing product which manufacturer would be selling in scrap so you can get wastage cost deduction as well, which in turn is same as the discount.

In single sourced situation, without an effective alternate supplier, a collaborative approach is required. There needs to be a vested interest from both sides to bring down the cost and it’s not to be limited to: - Relaxing engineering requirements - Joint investment in automation - Changes in inco terms For the supplier, this shows a long term commitment from the customer and for the customer, this is a chance to deepen the understanding of the manufacturing process.