
NEGOTIATING WITH PROCUREMENT
Renegotiating prices can have a significant impact on profit margins. It can often be the difference between business growth or business decline. Crucially, what is Procurement looking for and what is on their mind when negotiating?
Imagine that you are down to the last two suppliers shortlisted for a piece of work.
Consider these points when negotiating with procurement before you engage in the next round of discussions:- Where are the savings going to come from?
- What contractual clauses are important?
- Does price change as the volumes go up/down?
- What are the termination clauses?
- What is the contract duration?
- Payment terms?
- Who owns what IP?
- How will you demonstrate ROI?
5 Tips When Negotiating with Procurement in 2022
Here are 5 tips when negotiating with Procurement in 2022 for you and your team.1. THINK OF THE PROCESS TO THE END GOAL

2. UNDERSTAND THE PROCUREMENT PROCESS

- Need Identification
- Purchase Requisition
- Review of Request
- Vendor Assessment
- Quotation Request
- Negotiation and Contract
- Receiving Supply
- Supplier Relationship Management
3. PREPARE PREPARE PREPARE

4. WORK COLLABORATIVELY WITH YOUR COUNTER-PARTY

5. CLOSE THE DEAL WITH A WIN-WIN
Important, as this defines what you will be measured against. No matter how well optimised your sales process is, closing a negotiation with procurement remains one of the hardest aspects. Getting procurement to commit to your business doesn’t just require a strategic approach, but also delving into their mindset. The only way to make it a win-win situation for both parties is to actively listen throughout the negotiation, and ask those quality questions. To close the deal on an equal playing field.Book your team’s Effective Negotiation Workshop today – gather the team and we will take care of the rest.
Call us at KONA on 1300 611 288 for a conversation, or email info@kona.com.au anytime.
