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What strategies can you use to get internal stakeholders to see the value of vendor negotiations?

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Vendor negotiations are not only about getting the best price and terms from external suppliers, but also about aligning the interests and expectations of internal stakeholders who are involved in or affected by the procurement process. However, getting buy-in from your colleagues can be challenging, especially if they have different priorities, preferences, or perspectives than you. In this article, you will learn some strategies to help you communicate the value of vendor negotiations to your internal stakeholders and overcome any resistance or objections they may have.

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Dave Barr (MCIPS)

Purchasing Consultant East Sussex | Your Outsourced In-House Purchasing Director | I help SME businesses reduce…

1 Identify your stakeholders

The first step to get internal stakeholders to see the value of vendor negotiations is to identify who they are and what their roles and responsibilities are in relation to the procurement process. You may need to consider different levels of stakeholders, such as senior management, budget holders, end users, technical experts, legal advisors, and compliance officers. By mapping out your stakeholders, you can understand their needs, interests, and concerns, and tailor your communication and engagement strategies accordingly.

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Dave Barr (MCIPS)

Purchasing Consultant East Sussex | Your Outsourced In-House Purchasing Director | I help SME businesses reduce purchase costs ??, optimise supply chains and negotiate better deals. Save money & buy smart.
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Some people are decision makers with sign off authority and others are influencers. In my opinion what the Purchaser must do is not only discover who the authorisers and budget holders are but also who are the most impactful influencers and their "ranking". The influencers may not have budget authority, but they will significantly affect the decision-making process. Once the authorisers and senior influencers are identified the purchaser must actively engage with these people first to discover their character, behaviours, style and triggers. This will be achieved by active listening, understanding, learning and building rapport to establish a relationship. Now armed with knowledge you can craft a personalised engagement strategy.

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2 Involve them early and often

The second step to get internal stakeholders to see the value of vendor negotiations is to involve them early and often in the procurement process. You can do this by soliciting their input, feedback, and suggestions on the scope, specifications, criteria, and evaluation of the potential vendors. You can also invite them to participate in meetings, presentations, site visits, or trials with the vendors, and share relevant information and updates with them regularly. By involving them early and often, you can build trust, rapport, and collaboration with your stakeholders, and make them feel valued and respected.

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Dave Barr (MCIPS)

Purchasing Consultant East Sussex | Your Outsourced In-House Purchasing Director | I help SME businesses reduce purchase costs ??, optimise supply chains and negotiate better deals. Save money & buy smart.
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Involvement and communication are key. Stakeholders must believe and see their opinion and expertise is valued, noted and beneficial. The more you involve them in the process, the more likely they will involve you at the earliest stage of a new project they may initiate. In fact they may become your strongest advocate and insist you are involved in projects when others may not consider you at the outset. Positive feedback and encouragement must be applied liberally and the value of their input reported and celebrated.

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3 Highlight the benefits and address the risks

The third step to get internal stakeholders to see the value of vendor negotiations is to highlight the benefits and address the risks of the procurement outcome. You can do this by demonstrating how the vendor negotiations will help achieve the organizational goals, objectives, and priorities, and how they will support the stakeholder's own needs, interests, and concerns. You can also acknowledge and mitigate any potential risks, challenges, or trade-offs that may arise from the vendor negotiations, and provide solutions or alternatives to overcome them. By highlighting the benefits and addressing the risks, you can persuade your stakeholders to support your vendor negotiations and appreciate their value.

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Dave Barr (MCIPS)

Purchasing Consultant East Sussex | Your Outsourced In-House Purchasing Director | I help SME businesses reduce purchase costs ??, optimise supply chains and negotiate better deals. Save money & buy smart.
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I highly value stakeholder involvement and inclusion in negotiations when relevant. The purchaser will lead the commercial discussions but good counsel and expertise in the wings can be invaluable at the right moments. A key consideration prior to such inclusion is to make clear the goals, options, red lines, tactics and strategy for these negotiations with any supporting personnel. Communicating the plan, developing the understanding, coaching your peers and clarifying roles and responsibilities will not only help them but clarify and solidify your own plan in your mind.

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4 Manage expectations and resolve conflicts

The fourth step to get internal stakeholders to see the value of vendor negotiations is to manage expectations and resolve conflicts that may emerge during the procurement process. You can do this by setting clear and realistic expectations about the scope, timeline, budget, and quality of the vendor negotiations, and communicating them transparently and consistently with your stakeholders. You can also anticipate and prevent any conflicts that may arise from competing or conflicting interests, preferences, or perspectives among your stakeholders, and use negotiation skills, such as active listening, empathy, and compromise, to resolve them constructively. By managing expectations and resolving conflicts, you can maintain positive and productive relationships with your stakeholders and foster a culture of cooperation and consensus.

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5 Celebrate success and solicit feedback

The fifth step to get internal stakeholders to see the value of vendor negotiations is to celebrate success and solicit feedback after the procurement process is completed. You can do this by recognizing and acknowledging the contributions, efforts, and achievements of your stakeholders, and sharing the results, outcomes, and benefits of the vendor negotiations with them. You can also ask for their feedback, opinions, and suggestions on how to improve the procurement process, and how to leverage the vendor relationship for future opportunities. By celebrating success and soliciting feedback, you can reinforce the value of vendor negotiations and enhance your stakeholder satisfaction and engagement.

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6 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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What strategies can you use to get internal stakeholders to see the value of vendor negotiations?

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1 Identify your stakeholders

2 Involve them early and often

3 Highlight the benefits and address the risks

4 Manage expectations and resolve conflicts

5 Celebrate success and solicit feedback

6 Here’s what else to consider

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