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Supplier Negotiation

Procurement negotiation is an important business activity which saves money that goes straight to the bottom line of a company. The impact is huge and immediate.

Tips for negotiating with suppliers and vendors.

  1. Know your supplier organisation well
  2. Know the suppler negotiating team
  3. Set agenda in advance
  4. Prepare negotiation strategy worksheet
  5. Set up your negotiating team
  6. Align pre-arranged signals for internal communications
  7. Don’t accept the first offer
  8. Beware of low prices
  9. Remove features you don’t need to further reduce the price
  10. Try to cultivate long term relationship
  11. Be firm and fair