A Power Purchase Agreement (PPP) is a long-term agreement between a developer and a consumer on the purchase of energy. The Iberdrola Group has extensive experience in this sector in countries such as the United States, Mexico and Spain. Allow strategy and innovation: if you and your suppliers work together on strategy, you can get the best value for money. Invite the seller to meetings involving the product he is currently working on. You hired him because he is an expert in this field, which has allowed him to provide valuable ideas or innovative proposals that make the product better or even cheaper, which could give you a competitive advantage. Looking to the future: short-term relationships with suppliers will only lead to short-term gains and marginal savings. The real value comes from the development of long-term partnerships. This allows the trust and commitment of your suppliers, which could lead to discounts, preferential treatment and access to expertise. Focus on win-win agreements: you won`t be able to build relationships with strong negotiating tactics. Instead, you create resentment that can lead to other problems on the road. Focus on negotiating good faith agreements that will allow both sides to feel good about the agreement. Third, the management of your suppliers.
Your supplier managers must monitor performance and performance on a daily basis, ensure that contractual terms are met, approve or refuse changes, provide feedback and develop relationships through effective communication, honesty and integrity. The second part of the process is to select the best suppliers that can match the characteristics of your business. Each supplier will have its strengths and weaknesses, and choosing the right one is a very important task to optimize operational results. Supplier management is based on the next four steps. The first is the definition of the trade objectives mentioned above. It`s much easier to choose and manage suppliers if you have clearly defined performance metrics to compare and contrast.