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What is the best practices for negotiating with key suppliers?

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تم إضافة السؤال من قبل Ahmed El Masry , Procurement Consultant , Guidepoint Global, LLC
تاريخ النشر: 2013/10/04
Jyoti Negi
من قبل Jyoti Negi , Sr. Executive , Lifepharma FZE

During negotiation with key suppliers it is very difficult to make the deal in buyer's favour. But we can go for win - win negotiation. where we can present ourselves as a prominent and well managed buyer and must offer them good orders in return of good discout and easy supply terms from vendor's side.

We have to show them their benefit if they continue to deal with us... by this way there may be chance of good discount or relaxation in other terms of negotiation. i.e. payment term, delivery period etc.

Nadeem Asghar
من قبل Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

The process of negotiations is an art and involves use of commercial muscles by all those involved. The key factors to be taken care of during this process are:

  1. Our objectives
  2. Other party's expectations
  3. Our strenghts and weaknesses
  4. Other party's strength and weaknesses
  5. Our limits beyond which we may not accept the result of negiotiations
  6. Other party's limits beyond which it will walk out of negotiations
  7. Other party's anticipated behaviour

Osama Mohamed Abdel Aziz
من قبل Osama Mohamed Abdel Aziz , Procurement category manager - Admin & IT , Ezz steel

1- Plan for the negotiation very well before the negotiation session.

2- Ask and listen, don;t tell too much infomation.

3- Keep smooth pressure on the supplier.

4- Always give him the feel you are going to walk away (Provide alternatives) .

5- Don't give anything away without getting something in return

6- Make it friendly if you don't have big pressure on him and believe me it works :)

 

Good luck 

Essam Abdullaziz
من قبل Essam Abdullaziz , Senior Retail Manager , Savola company

#1: Measuring & tracking cost of poor supplier quality 

#2: Cost recovery 

 #3: Supplier Audit 

#4: Supplier Scorecard 

#5: Closed Loop Corrective Action

#6: Engaging Suppliers in quality systems 

 

Hassan Saleki
من قبل Hassan Saleki , Purchasing Manager of Power train, Chassis, and Stamping Parts and Material Supervisor , Renault IRAN

In short term I would say negotiation on getting cost reduction based on Boundling the businesses we have with them and the productivity we can expect from them as we give a big share of business to them. Always the system of giving something and getting something else would be beneficial for such kinds of suppliers.

elfatih mohamed ali Ali
من قبل elfatih mohamed ali Ali , Procurement and Logistic Officer , Sudanese Microfinance Development Facility SMDF

Negotiation  with supplier in consultant procurement is stipulated  after the technical evaluation took place

Key staff  to be around

Minutes of the meeting to be recorded

Agreement has to be reached within the allocated budget

Muhammad  Sultan
من قبل Muhammad Sultan , construction foreman , Alwasead Alaqarya

Just and Just your confidence of negotiation is the first key ,

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