Are your 2026 increases coming from the supplier… or from freight?

In 2026, the most expensive mistake in Procurement isn’t accepting an increase. It’s not knowing what’s driving it.

Because that +6% “supplier increase” often turns into +12% on your P&L… and the real delta is usually in:

• Incoterms compared incorrectly (EXW vs DDP)

  • EXW: the supplier “delivers” by making the goods available at their plant/warehouse.

  • DDP: the supplier delivers to your agreed destination with customs clearance and duties/taxes paid.

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  • Surcharges (FSC/BAF, congestion, peak).

    • FSC (Fuel Surcharge)

    • BAF (Bunker Adjustment Factor / vessel fuel)

  • Operational delays/detention (appointments, dock/ramp time, idle time).

  • Small shipments (LTL) due to variability and expedites.

  • Premium freight driven by S&OP / inventory breakdowns.

Practical rule: if the unit price goes up slightly but your delivered cost spikes, your problem is TCO, not “price.”

Quick checklist (60 minutes):

• Break the increase into blocks: price + transportation + surcharges + accessorials + inventory/lead time + quality + risk.

• Ask for evidence: cost breakdown + index + surcharge history + delay/detention report.

• Attack on two fronts: supplier and logistics.

If you can’t explain the increase in a table, you’re not negotiating—you’re reacting.

#procurement #strategicsourcing #negotiation #categorymanagement #suppliermanagement #TCO #costoptimization #supplychain #logistics #riskmanagement #ProcureLinkUp