THE NEED FOR SPEED: The Impact of Production Speed on Negotiations with Nico Taormina

SHOW SUMMARYToday on What the Duck?!, Sarah interviews Nico Taormina, an experienced buyer, and he is here to discuss his career in procurement and supply chain management. Nico shares his background, starting at Boeing and later transitioning to companies like Virgin Orbit, Canoe, and Northrop Grumman. He discusses how his experiences at each company shaped his understanding of procurement and supply chain dynamics. They delve into the crucial relationship between production speed and negotiations, particularly for manufacturers facing challenges in balancing production speed with supply availability. Tune in as they explore the far-reaching effects of production speed on negotiation dynamics and uncover strategies to optimize this delicate balance.Show Highlights Taking Flight at BoeingHands On Experience of Virgin OrbitSourcing Components at CanoeTrust, Communication and Relying on Suppliers’ Expertise Remote Work Emphasis on Written CommunicationVirtual Meetings Are An Unprecedented ChallengeAvailability and Lead Time Pain Points Production Speed Impacts Negotiations MOMENTS TO DUCK AROUNDNICO: PRODUCTION SPEED IMPACTS ON NEGOTIATIONS“Price is very important in the automotive industry, and it is a lot due to the production speed of how they operate. So, when you look at rockets or planes or helicopters, those are huge 30-year contracts. You're probably pumping out, you know, 50 a year, maybe that's max volume, somewhere around there, a hundred even. Cars, if you look at, like, the F-150, is doing hundreds of thousands a year. So, when I got to the automotive industry, suddenly the price negotiations became extremely granular and very detailed, and it's something that I've tried to bring with me back into the Aerospace industry.”NICO: NEGOTIATION TIPS & TRICKS“I think negotiations, to a point, obviously are difficult. I think I've heard a lot of different suggestions of what to do. A lot of people, there's the old thing of, you know, whoever talks first loses. So that one's a funny one. I have a hard time with that. I typically say a joke or something right off the bat. But, I would just say, you know, have a number, be prepared, understand where your number's coming from. Make sure your number makes sense, make sure you can get to your number based on, you know, whatever you're building in with labor, material, anything like that. Make sure that you can actually get to that number and then it makes sense. And then just be strong with it and go with it. If you've done the work and you've put in the time and that number is correct and you know how to get there, then that's something that you can win that negotiation if that all works out.”Connect with Nico and learn what he’s been duckin’ around with:Nico Taormina| Rocket Lab Connect with Sarah and find out more about what the duck she’s up toLinkedIn |Twitter |SourceDay |SourceDay.com Had fun with the podcast? Leave us a like, share our content, and subscribe! See you soon on the next episode of What The Duck?!