A recent article in eSide Supply Management on Negotiating for Mutual Benefit which outlined seven tried-and-true strategies for your organization to get more of what you both want from procurement negotiations had a number of tips that should not be forgotten if the goal is mutual benefit.
Survey the Landscape and Share the Wealth
Don’t limit purchases to nearby suppliers as suppliers in other geographies might bring additional benefits. Plus, if the number of suppliers is limited, spreading business among multiple suppliers can help to ensure their financial security and maintain a competitive market.
Negotiate for cooperation using the rules of “smartnership”
Don’t use win/lose tactics. Confrontation is not likely to elicit the collaboration and trust necessary for success. Instead, work with the supplier’s negotiating team to come up with a win/win scenario that the supplier will be incentivized to deliver on.
Insist that your supplier make a decent profit
A supplier that does not make a decent profit will not stay in business. It doesn’t matter how great the deal is if the supplier does not stay in business long enough to deliver. Plus, a buyer who insure’s a supplier’s financial success is likely to become a preferred customer, and this can deliver benefits for years to come.
In other words, the best results come from ensuring that your success is your supplier’s success.