Showing your hand before the game has started can spell disaster for any procurement.
Today’s Post is by Eli Razov, SafeSourcing Account Manager.
Showing your hand before the game has started can spell disaster for any procurement. Predictability can weaken your ability to negotiate. More often than not, contract negotiations are scheduled according to contract end dates, holidays, and individual plans, instead of when market conditions are right or when the opportunity arises.
RFQs and contract negotiation templates are recycled with only minor revisions before they are distributed to vendors and suppliers. Suppliers are approached during certain times of the year only because “it’s always been like that” or because “that’s the way the industry works like that”. Neither of these statements is true. It is actually because we all just feel very comfortable with the routine. This comes at a price, remember we all work with the best of the best in the sales world. They are trained and paid to know procurement patterns to maximize sales. A procurement specialist predictability, combined with these skills, can have a negative effect on your business and can effect the credibility of a procurement team.
To prevent this, procurement teams should use all of the tools at their disposal, spotting opportunities, taking advantage of the market changes, and timing negotiations. Consider bringing RFQs or any negotiations up by a year. Consider using tools like our eRFX process. And always be open to new vendors and suppliers.
Being unpredictable can be a powerful tool even if change can make you uncomfortable. It may not make us friends but it will help us succeed and ensure profitability.
For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact a SafeSourcing Representative we have an entire team waiting to assist you today.