Supplier negotiations may not work out so well for many companies and often getting supplies within your budget could make or break your monthly profits. But worry not, here is a comprehensive list of useful resources when it comes to negotiating and dealing with suppliers.
How to Negotiate with Powerful Suppliers
“Companies should start by assessing whether they could help the supplier realize value in other contexts. If not, they should consider whether they could change how they buy. They should then look at either acquiring an existing supplier or creating a new one. If all else fails, they must consider playing hardball, which can have a lasting impact on the relationship and is a last resort…”
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A Better Way to Negotiate
“As Purchasing professionals, we use two main approaches to establishing prices with suppliers.
The first is through a bidding process. We prepare formal documents and invite several suppliers to participate – a tried-and-true best practice for engaging with suppliers. We know that promoting competition between suppliers is a reliable and effective way to achieve good results.
The second approach is through direct (one-on-one) negotiations with current suppliers. We know that this method is akin to the Wild West, with few tried-and-true best practices. We are usually on our own to achieve good results…”
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6 Steps to More Effective Supplier Negotiations
“You don’t want to be known as the buyer who beats up all of his or her suppliers on price, but in some cases those requests for lower costs are warranted. After all, in order for your organization to meet its financial and growth goals it has to produce a profit margin. Achieving that goal incorporates a number of steps and one of them involves negotiating the best possible pricing on all purchased items.
“Reviewing pricing, market conditions and other factors should be part of a procurement agent’s DNA,” says Sergio Juarez, senior vice president, Europe and Latin America, for supply chain operating network Elemica in Exton, Pa. “The agents should be doing this on a daily basis.”
Here are six ways to make sure your next supplier negotiation session produces favorable results…”
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How to Negotiate Successfully
“In business, almost everything is negotiable. The key to successful negotiating, however, is figuring out when to spend time and energy negotiating and how to maximize your negotiations.
In the business of e-commerce, your biggest expense is typically COGS (cost of goods sold). And as your business grows, your COGS grows proportionally. So, savings that you can make across the board in this area will become more impactful the larger your business becomes…”
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How to negotiate with Vendors and Suppliers
“Whether you’re a deal-maker or a please- don’t-make-me-dicker type, or maybe you’re contracting services, striking a deal for office supplies or outsourcing a vital part of your business, you are faced with negotiation situations nearly every day. Whatever your challenge, learning stronger negotiating tactics and strategies will vastly improve the way you work and the results that come from your efforts. How to Negotiate With Vendors and Suppliers delivers the essence of negotiating in one power-packed day. From what’s really happening when two parties come together to how to look out for your interests; from what to say and how to say it to what’s better left unspoken. Understand the power that’s yours whenever you sit down at the bargaining table…”
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Managing Bids & Negotiating Prices
“The bidding process has 5 steps that begin with the development of a set of specifications or objectives. Sometimes a collaborative approach to identifying specifications is helpful. There are a number of resources available to engage that include colleagues, trade manuals, the Procurement Team, and the suppliers themselves. Try to create your specifications with sufficient latitude to engage the suppliers in a way that leverages their expertise. You may ultimately find that the best solution is revealed and better suits your needs…”
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How to Negotiate with Monopoly Suppliers
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Negotiating the best value out of monopoly suppliers is a tough challenge. If unchecked, monopolies – usually the product of a lack of sufficient demand to sustain a competitive market, complex requirements or the need for significant infrastructure to meet set requirements – can steer a relationship in a direction that doesn’t benefit the customer…
But how can organisations drive even better value out of a monopoly supplier when the opportunity to negotiate arises? Understanding how existing relationships have evolved over time and the psychology of monopoly suppliers will enable you to release surprising value…”
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Six Surprising Negotiation Tactics That Get You The Best Deal
“If you’ve read my columns, you know I’ve been on a bit of an Adam Grant kick this year. The Wharton professor’s book, Give and Take, has had those of us in the leadership field thinking and talking. It’s made numerous lists of the year’s best business books, as it offers significant, research-based, evidence that disputes many of the influencing practices that we take to be correct.
Grant’s work is immensely practical and timely. It cuts to the core of the influencing skills so many professionals are trying to strengthen in our current virtual, distributed workforces. One of my favorite elements of Grant’s work involves negotiation…”
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10 Tips to Negotiate Prices in Retail
“Negotiation is an age-old practice that is still common in the marketplace in many countries today. In the United States, most consumers want to avoid the haggle and will simply accept the price on the tag. It is the successful retailer that has learned how to play the game of give and take with their suppliers. Learn how to negotiate with vendors at a buying show or market to receive the best pricing and terms on products with these negotiation tips…”
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Negotiation In The Purchasing Process
“Negotiation in the purchasing process covers the period from when the first communication is made between the purchasing buyer and the supplier through to the final signing of the contract. Negotiation can be as simple as trying to obtain a discount on a case of safety gloves through to the complexities of major capital purchases.
A purchasing professional must aim to be successful in their negotiations with suppliers to obtain the best price with the best conditions for every item that is purchased…”
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