6 October 2015
Dear Valued Supplier,
Our company (PDITL) and its suppliers enjoy long-term business relationships over years with a proud tradition of anticipating and responding to the challenge of evolving customer demands. Today, that challenge is even more complex due to increased competition in Thailand and across our sales regions, cost-cutting measures in the wire and cable industry, and recently an emergence of economic issue in Thailand. We approach an unexpected time at PDITL on variation to targets in terms of sales, material costs, and operating expenses during past several months in 2015.
Having said that we have enjoyed our relationship with your company as a valued supplier and with that in mind we now see the need to ask for your help and support as business partners. We remain committed to
sustain our business by reducing our company's impact on costs of goods sold and operating expenses while satisfying customer demand for quality and competitive products. This commitment will impact
virtually everything we sell and deliver. Therefore, we ask you to be a partner with us by providing mutual commitment for price reduction for products supplied or services rendered to PDITL. There are 3
considerations we would like to suggest.
(a) Look for opportunities to reduce price or total costs on contract for products/ services to be supplied to our company over the next 6 months. We are targeting a 35% cut to all material and expense contracts, blanket purchase orders or future spot purchases.
(b) Investigate opportunities to utilize the short-term and long-term rebate program for the volume already supplied in the past and the future volume.
(c) Combine (a) and (b) to optimize the mutual commitment.
With our reduction target of 35% in the rest of 2015 and beyond, your proposals and/or responses will be evaluated on a case by case basis to determine how they compare with what could be achieved in the open
marketplace.
PDITL is giving its current vendors first opportunity to submit cost reduction proposals within 12 October 2015 in advance of considering and implementing higher impact measures.
If you are willing to participate and support our cost reduction program, please fill out and sign the attached form below and return it to Cholkanok Choksawat, Strategic Sourcing & Procurement Manager, and fax to +662 769 2477 or email to Cholkanok.Choksawat@pdcable.com
Please feel free to include any other innovative ideas or suggestions on how PDITL can reduce costs for the products or services your company provides. Our responsible Procurement members will contact you to
implement the changes and/or amendments.
Look forward to having your reply and thank you for your continued support.