The procurement process is most effective when there’s an ongoing dialogue between the various stakeholders. This is especially true when contracts are being finalized and why procurement negotiation is so important.
Negotiation in procurement refers to the process between buyers and suppliers to arrive at a mutual agreement concerning the terms and conditions of the procurement contract. Good procurement negotiation incorporates the needs and objectives of both parties to fuel shared growth.
When done effectively, good procurement negotiation puts you in a position to build strategic business relationships for long-term success. With strategic procurement negotiation, you can:
Leveraging relevant data plays a significant role in garnering useful procurement negotiation outcomes. Without access to the correct data, it can get tough to make informed decisions, support your negotiation strategies or optimize outcomes. When you use procurement data during negotiations, you can:
Here’s a question to ask yourself: Wouldn’t you have a better negotiation position with your supplier if you had insight into relevant information like their financial position and performance? To ensure the procurement negotiation goes in your favor, here are some supplier financial metrics you must consider tracking before negotiating:
Contact us or play around with our platform first. No matter what you decide, we’re here to help you succeed.