I've been in the materials management business for 15 years. My time in the supply room has been at times stressful, never dull and always educational. Here are a few lessons I've learned along the way.

• Develop trust. Building a solid relationship with vendor reps takes time. Always accommodate sales calls, even when reps stop by unannounced. They'll truly appreciate your taking just a few minutes to say hello. When time permits, strike up a conversation before talking business. It's during these informal discussions that you'll forge strong relationships. I've sat for hours with some reps, staying long past closing to trade stories about family, movies or must-read books. Time is a precious commodity in our business, but I view conversations with reps as time well spent.
• Recognize a buyer's market. Sales reps will come out of the woodwork with promises of products that are more effective than the original when patents expire on devices or surgical drugs. Take advantage of this buyer's market, and use the reduced prices of the competing companies against each other. Call the manufacturer of the patented device and ask for a price break based on the sudden influx of purchasing options.
• Think small for savings. Small companies can sometimes provide a better price on low-volume supplies than the major players because of low overhead and a desire to obtain new business. I recently purchased an otoscope from a small company and shaved more than $100,000 off the price offered by a large vendor for the exact same device. Approach the major players with the price quote from the small company. You'll either get a better deal from your usual vendor or an admission that the price can't be matched.
• Stick to your guns. When the rep of our customized pack vendor told me about a pending price increase that would have put our facility $12,000 over budget, I told him we couldn't cover the additional cost. The rep said he'd try to work something out, but was delayed in getting back to me with a final answer. Finally, I told the rep that I had a competitive quote from another company - which I did - and that we'd shift our business elsewhere in January 2007. I must have pushed the right buttons, because not only did the company not raise the price of the packs, it also reduced the costs so I ended up paying less than the original price. In purchasing as in poker, sometimes you have to call their bluffs.
• Pick your battles. For low-volume supplies I avoid bargaining wars between companies. I'll ask the competitors for their lowest prices, and then make a decision. I don't have time to play the middleman in a long price war, involving numerous "can you top this?" phone calls. One price. One decision. That's how I work. For large-volume supplies, like our procedure packs, finding the lowest possible price is essential. In those cases I'll haggle over price and play vendors against each other.