7 key skills for successful supply chain and procurement negotiation

Skill Dynamics

Negotiation is key to business success. Successful negotiation involves good interpersonal and communication skills used together to bring a desired result. A good negotiator can ensure the right prices are secured, which makes a significant contribution to an organization’s success.

The New Age of Negotiation!

Supply Chain Game Changer

New age of negotiation article and permission to publish here provided by Sam Jenks at kodiakrating.com. We negotiate on a daily basis. Sometimes negotiations are small and sometimes they hold a bit more value or impact. But, there are two sides to every negotiation table.

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The Negotiation Before the Negotiation!

Supply Chain Game Changer

When preparing for a negotiation, it is common to identify the issues to be negotiated, decide on negotiating tactics to use on your supplier, think through what your supplier may say and practice saying the words you’ll use during the negotiation. Those are all necessary components of negotiation preparation. To truly reach your potential in a negotiation you need to understand some key things about your supplier. Subscribe Here!

Logistics Negotiation Study

The Logistics of Logistics

Logistics Negotiations. How did you prepare for your last logistics negotiation? There seems to be lots of opinions about logistics negotiation, but not very much research. Wouldn’t it be nice to enter your next logistics negotiation with some more negotiating know how? Understanding What Works in Logistics Negotiations. One of Heather’s areas of study is logistics negotiation. Logistics Negotiation Success.

Is Procurement Being Too Aggressive in Negotiations?

Supply Chain View from the Field

A recent post by my colleage Kate Vitasek (author of the “Vest Outsourcing” model) in Forbes magazine argues that procurement is taking too aggressive a stance in negotiations with major logistics providers. The smarter move is to create highly collaborative relationships with key suppliers where buyers and suppliers work together to mitigate (or even eliminate) risks.

Negotiating for profit: Reviewing supplier contracts to increase profit margins and lower costs

DELMIA Quintiq

More importantly, the insights gained provide valuable support for them to negotiate better contracts with their suppliers. Sourcing forecasts of their S&OP allows them to negotiate for lower prices for some of their raw materials. S&OP Maturity Series, part 3 of 5. Readers of my previous posts ( part 1 and part 2 ) will have seen how Q Co. has successfully integrated the new ASDF account into their normal business procedures.

Don’t Miss Out on These Three Ridiculously Simple Negotiating Tricks You Can Use Today

Supply Chain Cowboy

We negotiate agreements all the time, but many people like you still don’t feel comfortable making deals. In a business setting, this phrase can have significant impact with suppliers. For example, when negotiating payment terms, you can use a phrase such as, “Most of our suppliers like you offer us credit terms of Net 60.” ” This wording can give your supplier a strong inclination to offer you the same.

7 Steps to Product Procurement Pricing that Suppliers Can Support

MIT Supply Chain

A new tool enables procurers to negotiate product prices without bargaining away supplier goodwill. When bargaining with suppliers over a product price, how can procurement professionals secure the best deal without damaging a valued relationship by being overly aggressive? One way to estimate a procured product’s price, or should-cost, is to approximate its cost based on the item’s architecture and/or the firm’s financials. Fair deal.

Five Top Tips for Project/Program Team Negotiations

The Logistics of Logistics

When we consider negotiations we often think about discrete issues that occur and need to be. Take for example an automotive supplier that has won a major business award with a customer on a. the business is awarded and the start of production, the supplier and customer will face a myriad of. But will this pricing ultimately favor the buyer or the. Before I lay out the Top Five Tips for getting the pricing that favors your company’s interests, let’s.

Supplier Registration – Goals, Benefits & Challenges

SCMDOJO

However, when you buy something, you may not always know all the suppliers that offer a particular product. Then the Supplier registration form comes in handy. This means that every time you host a sourcing event, the same suppliers bid on the same products at the same prices.

Legal Experts Need to be Front and Center in Negotiating Software Contracts

Supply Chain View from the Field

I had the opportunity to engage in a negotiation seminar with a large insurance company last week, and had the team work on a software contract role play. In the scenario, there was both a buyer and supplier, and there were multiple facets to consider in the negotiation. The problem in preparing for such a negotiation is that deriving a “should-cost” model in software contracts is extremely difficult – because often there is no cost-based model.

Supplier management KPIs

Taulia

The supply chain activities involved in the procurement process , from sourcing the right suppliers to taking delivery of materials and products, are vital to the overall health of any business. That makes the performance of suppliers in your supply chain a large factor in optimizing the effectiveness of your broader operational strategy. But how can supplier performance be measured? The importance of supplier KPIs. Supplier risks can come in lots of different forms.

The Heart of Negotiation: A Conversation with Molly Fletcher

Jaggaer

From agreeing on bulk pricing with a supplier to working out budget numbers with internal stakeholders, procurement teams are locked in a constant give and take. But negotiation doesn’t have to be a battle and learning the steps to success is simpler than you may think.

The High Cost of Poor Supplier Relationships

Talking Logistics

We’ve seen several headlines over the past six months about how poorly suppliers are being treated these days. Here’s a sampling: Tesco faces fresh accusations of ‘bullying’ suppliers over price cuts ( The Telegraph ). Woolworths accused of bullying suppliers into paying millions for Cheap Cheap campaign ( The Sydney Morning Herald ). One in five suppliers bullied, says UK small business lobby ( Financial Times – sub.

Apple: Still a Penny Wise and Pound Foolish?

Talking Logistics

For example, here are a couple of the contract terms he references in the declaration: - The pricing for sapphire [which GTAT was to produce] was the lesser of (i) the price agreed between the parties, (ii) the “not to exceed” price listed on a schedule, (iii) 95% of the lowest price offered by GTAT to any of its customers or (iv) 99% of the quoted price in a bona fide offer to Apple from another qualified source.

Supplier Negotiation Tips: Close The Right Deal

CormSquare

Supplier negotiations can be a tough topic to deal with. When suppliers eliminate competition by minimizing prices or creating technology interferes with competitors, it often seems like companies are forced to accept the prices of the goods. Moreover, when demand of certain product exceeds the available supply and the suppliers charge any price they wish, you may feel that you have little or no power over negotiation.

28 Procurement KPIs That Optimize Supplier & Buyer Performance

Silvon Software

Supplier KPIs. Managing supplier performance can help procurement leaders focus their resources on value-added activities, instead of addressing the problems caused by supplier performance like defects, rush, excessive inventory, delayed delivery to customers, shutdowns, etc.

Why Companies Need a Supplier Relationship Management Strategy

GlobalTranz

While the opportunities are numerous so are the challenges; in this fiercely competitive global marketplace success requires companies to pay closer attention to supplier relations. Global leaders should retain suppliers with vested interest in the long-term success of the company. To attain this level of trust with suppliers, companies should approach these relationships with the same care they use when approaching customers. Supply Chain supplier relationship management

5 Ways To Spark Supplier Engagement: Making Vendors Into Partners

Kodiak Hub

Some buyers and suppliers have relationships where one party, or both parties, genuinely believe that the other party doesn’t care about their business relationship. ??Responding as a prospective supplier?—?during Responsible Sourcing starts with a solid Supplier Engagement Model.

Supplier payment terms and supply chain finance

Taulia

For over a decade, supply chain finance (SCF) has given buyers and suppliers the ultimate opportunity to gain access to cash otherwise trapped in the cash conversion cycle. Suppose a buyer wants to negotiate longer payment terms with a supplier to improve their DPO and cash position.

How AI is forecasting price fluctuations for raw materials and rare earth commodities

Resilinc

We looked back to compare the indicators of future supply and demand trends for cobalt that were provided to our customers with the actual market prices that later manifested,” explained Shahzaib Khan, Resilinc’s Senior Director of Operations. And prices did indeed retreat.”.

Supplier Relationship Management: What It Is and How to Improve it?

Unleashed

Supplier relationship management is often referred to as the B2B equivalent of customer relationship management. We’ll define this crucial management concept and explain how you can implement and improve supplier relationship management to leverage business success.

Procurement & Suppliers: Paying Attention to Terms & Conditions to Keep Supplier Relations Postitive

GlobalTranz

Editor's Note: Today's blog is by our great friend, Chuck Intrieri where he gives us a fantastic example of how Procurement and Suppliers can enhance Supplier Relations by navigating the "Battle of the Forms.". In the real world, it can lead to delays and confusion, and, in the worst cases, prolonged and protracted litigation, resulting in bad supplier relations. Naturally, a supplier relations conflict exists. Contract Negotiation Enhancing Supplier Relations.

Purchase Price Variance (PPV)! A Profit or Loss Opportunity?

Supply Chain Game Changer

Purchase Price Variance, or PPV, is a common term in the realm of Purchasing/Procurement and Finance. In my experience proactive, attentive, and detailed Purchase Price Variance (PPV) can make an incredible contribution to the profitability of a company. MOQs and Tiered pricing.

Winning Strategy in Procurement Negotiations – Moving Far Beyond Excel

EC Sourcing Group

Most professionals in procurement want to develop a strategy to win consistently in negotiations. I am not referring to a method to get price concessions every time. If you are using Excel for your complex awards and sensitivity analysis, you are giving up a strategic advantage to your suppliers and competitors. Price concessions are normally great but what if you are giving up more than the concession is worth?

What Makes a Supplier “Strategic”? Not Spend Volume.

Jaggaer

Leverage your supplier management for maximum benefit with the white paper: How to Achieve Holistic Supplier Management. Strategic Supplier Management. Supplier ecosystems are increasingly diverse. Strategizing for a diverse range of suppliers. Supplier Management

What is the Best Supplier Vetting Process?

Supply Chain Game Changer

Strategic Supplier Relationship Management – Do’s and Don’ts. Does your business rely on at least one supplier? Or do you need multiple suppliers in order to perform your daily operations? Either way the quality, reliability, and value for cost of your suppliers is crucial to your organization’s success. On the other side, if your suppliers don’t live up to the standards you require, your organization can be damaged. Subscribe Here!

The Key to Navigating Supplier Relationships in the Post-Pandemic World

LevaData

In only a number of months, this sudden change sped up the adoption of digital technologies and supplier relationships by several years. Some struggle with the power balance of purely remote supplier relationships.

Ivalua Completes the Source-to-Pay Journey with Embedded Global Supplier Payments

ivalua

Enabling rapid, cost-effective and transparent supplier payments anywhere in the world. Today’s supplier payments remain complex and crucially lack transparency and efficiency that strain supplier relationships, increase transactional costs and cause frustration for all those involved.

8 Supplier Management Best Practices any bussiness can implement

Precoro

For anyone responsible for procurement in an organisation, supplier management is an inevitable area of responsibility. Poor supplier performance due to the lack of oversight, analytics and clearly defined requirements. Anticipate and react to market volatility and price changes.

Strategic Supplier Relationship Management – Do’s and Don’ts

Supply Chain Game Changer

Supplier Relationships – Don’t go over to the Dark Side! Shortly after I joined the Commodity/Category Management Procurement organization I was invited to attend the annual Strategic Supplier Awards event. There were Executives from dozens of Suppliers in attendance. The event concluded with award recognition given to Suppliers based on their scoring and standing as being of Strategic value to the company. Suppliers may be called Preferred or Tactical.

Forgotten About This in Your Annual Supplier Meetings?

Jaggaer

With 2020 well and truly begun, the timely question of whether you’ve had you had your annual supplier meetings yet, or not, springs to mind. If you haven’t, do your suppliers know what you expect from them? We’ve updated prices so everything is now sorted”, ask yourself if that really is everything? Is it really enough to re-negotiate prices with the most important partners once a year? Orchestrate your supplier management for maximum benefit.

“You’re Only as Good as Your Worst Supplier”

Talking Logistics

But you’re only as good as your worst supplier. to take in parts from Pratt’s suppliers, package them into kits holding about 8,000 parts, and ship them to Pratt factories for assembly by company’s machinists. If the edict comes down from the corner office that every department must find ways to cut costs by 10 percent this year, then the old and tired “I win, you lose” approach to negotiations will prevail — and the CEO will be as responsible as anyone for the consequences.

Why An Holistic Approach to Suppliers? Your Questions Answered

Jaggaer

Last week, Director of Product Management Georg Rösch hosted a webinar that asked the question, “Why is it important to take a holistic approach to supplier management?” It’s just another example of suppliers becoming a larger and larger part of every business. .

When the Elephant in the Room is Your Supplier!

Supply Chain Game Changer

Unless your company is amongst the very largest companies in the world then chances are your Procurement team will, at some point, be dealing with Suppliers that are larger than your company. In a function such as Procurement where negotiating is a central part of the role, leverage is a critical element in those negotiations. So how do you negotiate with a Supplier that is larger than your company and has greater perceived leverage? Subscribe Here!

Speed, Collaboration and Innovation – Key Words for the New Procurement Decade

ivalua

For the vast majority of organisations, suppliers must play their part when it comes to agile business and speed to market. That requires extraordinary work internally and co-ordination with key suppliers. What does this mean for procurement and supplier management?

Best Practices to Improve Your Truckload Service and Price

TMC

These are questions we posed to MIT graduate students for a research project that focused on service and pricing in the truckload market. Leaders receive better performance and price from carriers when that number is reduced to a finite amount.

How To Find a Manufacturer or Supplier for Your Wholesale Business

EMERGE App

Once you decide the product that you will be wholesaling, you have to find the perfect supplier. It goes without saying that the relationship between a wholesaler and a supplier must be mutually beneficial one. Understanding the Different Kinds of Wholesale Suppliers.

The use of machine learning to generate quick savings and gain in price consistency

KEPLER Consulting

The purpose of this article is to share our experience in the use of machine learning to generate quick saving opportunities and homogenize purchased pricing across business units / regions in large groups. It could rapidly become cumbersome for a large group and its supply management team to ensure consistency of prices on a specific category. Or a certain price for a red product and double for its blue version? History of pricing is rarely reviewed.

Supply Chain Cost Reduction: The Dangers of Supplier Squeezing

Logistics Bureau

I’m not for one moment suggesting that you shouldn’t address your company’s suppliers as an approach to supply chain cost reduction. I’m not even suggesting that you shouldn’t be prepared, when necessary, to negotiate aggressively. There is a time and a place when aggressive negotiation for price reductions and discounts make sense. Supplier Squeezing in the Headlines. Some companies are famous for supplier squeezing.