The golden rules for successful procurement negotiation

Knowing the skill of negotiation will benefit the procurement team to practice the process effortlessly. The negotiation involved two parties the buyer and the supplier. You need to be prepared before being part of the negotiation, get familiar with the market condition, and keep a line with the limits of other parties and organizations. Do give the other party a space to express, so two-way communication can be done smoothly during the negotiation. This article will make you aware of the golden rules for successful procurement negotiation.

Keep on reading this article for further information…?

1.?Remember procurement’s objectives:

The procurement team has expertise in negotiation, they will try their best to bring down the cost and get discounts. Keep a list of procurement objectives in front of the eyes to help the team to accomplish them. This will help to create long-term relationships and let to mutual benefit. You need to keep a check on whether the suppliers are managed professionally and ethically. Do highlight your organization’s perfect supplier management and customer value record, so that when the negotiation is going on it will add value to the deal.

?2.?Invite for a meeting:

Before the proposal gets finalized, do set a meeting with the procurement team. You can even request to know more about their procurement evaluation. Through your mutual point-of-contact try to fix a meeting and keep them along with you through the meeting. Keep a questionnaire

ready with you, which can include the following question:

What are you looking for in your partner?

What type of standard operating agreement for suppliers, do you have?

You can even ask to review it.

What is the approximate approval timeline?

If you are unable to arrange a meeting with the procurement team do ask for the details through mail.

?3.?Keep your materials ready in advance:

Working in the business market might have given you an idea of the procurement needs so start preparing it before the final stage i.e., contract and terms. The procurement team will check every detail whether it is insurance, customer reference, or background. Keep everything ready and clear in advance. The approval takes time, everything is dealt precisely and you can gain an advantage by keeping everything clear in advance. It is risky to prepare the material in advance but keep everything in control so you will not face loss. A well-preplan will make you look different from the other vendors. This tells that you are a worthy supplier for the deal.

Summing Up!!!

According to us the definition of the best negotiation is that it should create a warm, friendly, and both-party interest-saving agreement. The company needs to build a bond with the opposite party to create a win-win situation for both rather than just trade. In the eyes of the procurement team, the supplier needs to be a star for better negotiation.

Hope so this article was helpful and you can imply the golden rules for future negotiation. Stay connected for more such articles…