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How to Prep for a Winning Negotiation

Too often, supply chain and procurement leaders are not well-prepared for complex negotiations with key suppliers. For one thing, they don’t do their homework as comprehensively or conscientiously as the folks on the other side of the table. Negotiation expert Mark Trowbridge offers seven techniques that can get you ready.
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By Mark Trowbridge
Mark Trowbridge, CPSM, C.P.M., is a principal at supply management consultancy Strategic Procurement Solutions, LLC.
January 19, 2012

Although supply chain managers today have access to a wide range of e-sourcing and auction technology tools, they still use conventional negotiations as the way to establish or adjust the business relationships. Most senior procurement professionals would agree that this is the preferred way to handle alliances and strategic supplier relationships, which collectively account for a large proportion of supply chain spending.

In my many years of leading negotiations on behalf of Fortune 100 companies, and in training corporate and conference audiences on best practices in negotiations, I’ve become impressed with the levels of preparation of the typical supplier negotiating team compared to their procurement opponents. It’s apparent that those suppliers’ teams are making the time to cover every possibility they can think of. The team on the other side of the table? Not so much.

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Although supply chain managers today have access to a wide range of e-sourcing and auction technology tools, they still use conventional negotiations as the way to establish or adjust the business relationships. Most senior procurement professionals would agree that this is the preferred way to handle alliances and strategic supplier relationships, which collectively account for a large proportion of supply chain spending.

In my many years of leading negotiations on behalf of Fortune 100 companies, and in training corporate and conference audiences on best practices in negotiations, I’ve become impressed with the levels of preparation of the typical supplier negotiating team compared to their procurement opponents. It’s apparent that those suppliers’ teams are making the time to cover every possibility they can think of. The team on the other side of the table? Not so much.

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