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Last updated on 2024年10月12日

What are the best sources of information and benchmarks for your negotiation?

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Before you enter a purchasing negotiation, you need to have a clear idea of what you want, what you can offer, and what the market conditions are. This will help you set realistic goals, make persuasive arguments, and avoid costly mistakes. But how do you find the best sources of information and benchmarks for your negotiation? Here are some tips to help you prepare effectively.

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Eman Abouzeid

Global Procurement, Logistics and Supply Chain Operations Expert |??TOP 100 Most Influential Supply Chain Woman in…
Aynel Gaziyeva

Supply Chain Professional | MBA, CIPS
Sanjeet Kumar Sinha

Top LinkedIn Voice l Procurement Head -Emami Ltd (Eastern Cluster) I Ex DuPont I Isagro(Asia) I Ranbaxy I Teva API I…

1 Internal Data

The first source of information you should consult is your own internal data. This includes your budget, your past purchases, your current needs, and your future plans. You should analyze your spending patterns, your usage rates, your inventory levels, and your quality standards. You should also identify your priorities, your constraints, and your alternatives. This will help you define your target price, your walk-away point, and your value proposition.

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Eman Abouzeid

Global Procurement, Logistics and Supply Chain Operations Expert |??TOP 100 Most Influential Supply Chain Woman in Africa
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1) Books and Articles: Consider reading negotiation-focused books by experts that provide strategies and frameworks. 2) Industry Reports: Look for reports from organizations like Gartner, or McKinsey, which provide insights into market trends and benchmarks. 3) Professional Associations: Many industries have associations that publish research, white papers, and best practices. Joining these organizations can provide valuable resources. 4) Competitor Analysis: Research competitors’ offerings, pricing, and negotiation tactics - Tools like SWOT analysis can help in assessing their strengths and weaknesses. 5) Historical Data: Review past negotiation outcomes, both your own and those of others in your industry.

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Aynel Gaziyeva

Supply Chain Professional | MBA, CIPS
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1. Internal Data Historical Data: Review past contracts, pricing, and performance metrics to understand what has been achieved in previous negotiations. Operational Metrics: Analyze internal cost structures, production efficiencies, and inventory levels to identify areas where you can negotiate better terms.

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Sanjeet Kumar Sinha

Top LinkedIn Voice l Procurement Head -Emami Ltd (Eastern Cluster) I Ex DuPont I Isagro(Asia) I Ranbaxy I Teva API I UOP I Honeywell I Six Sigma Green Belt I CPM I SCM I IIM I General Management I Operations Management I
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The best sources of information and benchmarks for negotiation include industry reports, market research, salary benchmark data from websites like Salary.com, professional associations’ publications, Harvard Business Review articles, and negotiation books and articles. These resources provide valuable insights, standards, and practical advice to help you negotiate effectively.

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Eman Abouzeid

Global Procurement, Logistics and Supply Chain Operations Expert |??TOP 100 Most Influential Supply Chain Woman in Africa
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1) Internal data including your budget, your past purchases, your current needs, and your future plans. 2) External data including market research, industry reports, supplier profiles, and customer feedback. 3) Negotiation data including the history, the context, the goals of the negotiation, and the future expectations of both parties. 4) Legal data including the laws, regulations, the contracts that govern the purchasing process, terms and conditions, compliance requirements, and the dispute resolution mechanisms of the deal. 5) Ethical data including values, principles, the standards that guide your purchasing decisions, the ethical codes, the social responsibilities, and the environmental impacts of the deal.

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Vadym Ostrovskyy
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Identifying the best information sources and benchmarks for negotiation is critical. Utilize industry reports, market studies, and financial data for insights. Engage with industry associations, attend conferences, and tap into professional networks. Customer feedback, supplier performance metrics, and historical data within your organization also provide valuable insights. This multifaceted approach ensures a comprehensive understanding, empowering you for informed and effective negotiations.

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2 External Data

The second source of information you should consult is external data. This includes market research, industry reports, supplier profiles, and customer feedback. You should gather relevant and reliable data on the supply and demand trends, the price ranges, the quality levels, and the performance ratings of the products or services you want to buy. You should also benchmark your competitors, your peers, and your best practices. This will help you assess your position, your opportunities, and your risks.

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Aames Rocha

Comprador Sênior Perecíveis Dom Atacadista
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Dados Externos: Estes oferecem uma vis?o abrangente do mercado, incluindo padr?es de pre?os, novas tecnologias e práticas competitivas. Avalie relatórios do setor, estudos de mercado e notícias relevantes para obter uma compreens?o aprofundada do ambiente externo. Esses insights podem ser decisivos para identificar oportunidades e evitar armadilhas comuns do mercado.

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3 Negotiation Data

The third source of information you should consult is negotiation data. This includes the history, the context, and the goals of the negotiation. You should review the previous contracts, the current issues, and the future expectations of both parties. You should also research the interests, the preferences, and the styles of the negotiators. This will help you build rapport, trust, and credibility.

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Aames Rocha

Comprador Sênior Perecíveis Dom Atacadista
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Dados de Negocia??o: Avalie negocia??es passadas, focando tanto nos sucessos quanto nas falhas. Examine as táticas utilizadas, as condi??es de mercado na época e o contexto das negocia??es. Este histórico pode oferecer li??es valiosas, permitindo que a empresa desenvolva estratégias mais eficazes e adaptativas para negocia??es futuras.

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4 Legal Data

The fourth source of information you should consult is legal data. This includes the laws, the regulations, and the contracts that govern the purchasing process. You should understand the legal implications, the compliance requirements, and the dispute resolution mechanisms of the deal. You should also review the terms and conditions, the clauses and warranties, and the penalties and remedies of the agreement. This will help you protect your rights, your obligations, and your liabilities.

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Aames Rocha

Comprador Sênior Perecíveis Dom Atacadista
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Dados Legais: Compreender o ambiente legal é essencial. Consulte as leis locais e internacionais, padr?es de compliance, e regulamenta??es específicas do setor. Este conhecimento n?o só protege a empresa contra riscos legais, mas também oferece uma base para negociar acordos que sejam juridicamente sólidos e éticos.

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5 Ethical Data

The fifth source of information you should consult is ethical data. This includes the values, the principles, and the standards that guide your purchasing decisions. You should respect the ethical codes, the social responsibilities, and the environmental impacts of the deal. You should also avoid the ethical dilemmas, the conflicts of interest, and the unfair practices of the negotiation. This will help you maintain your reputation, your integrity, and your relationships.

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Mohit Agarwal, Expert of Bio-Plastic and Bagasse Single-Use Disposables

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Environmental Responsibility: Understanding the environmental implications of your purchases is essential. Ethical data helps assess how products are made, the resources used, and the waste generated. Choosing sustainable options contributes to reducing carbon footprints and promoting a healthier planet. Social Responsibility: Ethical data also includes social responsibilities, encouraging support for businesses that prioritize fair labour practices and community welfare. Avoiding Ethical Dilemmas: Engaging with ethical data helps navigate potential conflicts of interest and avoid unfair practices. This commitment strengthens your reputation and builds trust with clients and stakeholders.

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Aames Rocha

Comprador Sênior Perecíveis Dom Atacadista
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Dados éticos: A ética na negocia??o vai além da conformidade legal. Envolve avaliar as práticas de sustentabilidade, responsabilidade social e ética dos fornecedores e parceiros de negócios. Adotar uma abordagem ética nas negocia??es refor?a a reputa??o da empresa e promove relacionamentos de longo prazo baseados na confian?a e respeito mútuo.

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6 Feedback Data

The sixth source of information you should consult is feedback data. This includes the evaluation, the feedback, and the learning from the negotiation. You should measure the outcomes, the satisfaction, and the value of the deal. You should also solicit the feedback, the suggestions, and the recommendations from the stakeholders. This will help you improve your skills, your performance, and your results.

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Aames Rocha

Comprador Sênior Perecíveis Dom Atacadista
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Dados de Feedback: O feedback é uma fonte rica de insights diretos. Inclui avalia??es de desempenho dos fornecedores, satisfa??o do cliente, e a eficácia das negocia??es anteriores. Analisar esses dados ajuda a identificar áreas de melhoria, refor?ar pontos fortes e ajustar abordagens para futuras negocia??es.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Aames Rocha

Comprador Sênior Perecíveis Dom Atacadista
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Fatores como mudan?as econ?micas, avan?os tecnológicos e tendências políticas podem influenciar significativamente as negocia??es. Estar ciente desses elementos permite antecipar desafios e adaptar estratégias de acordo, garantindo negocia??es mais efetivas e informadas.

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What are the best sources of information and benchmarks for your negotiation?

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1 Internal Data

2 External Data

3 Negotiation Data

4 Legal Data

5 Ethical Data

6 Feedback Data

7 Here’s what else to consider

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