Procurement & Negotiations strategy for better results from suppliers
Once your RFI, RFP & Pitch process is done, but not getting great results from your potential suppliers... How can you innovate in this process?
Thanks a lot for brainstorming!
Another good idea can be inviting those potential suppliers to face to face meetings so you can better explain your needs/projects. At the same time they can better present their view and even refine their proposals. One way to take this a step further can be a small workshop but something dynamic and value creating. Hope this helps!
Hi, be upfront with what you want. Don't hold incentives back for fear of giving up too much as the name of the game is for both parties to get something out of the partnership. If you offer incentives make sure they are easily administered and not cumbersome. Contract term is useful in this instance as it encourages the supplier to perform so they maintain the business. For large value longer term relationships try and develop these with your business strategy in mind. Make your business partners aware of the business strategy as this gives them a sense of understanding and how they can help you. Engage with the supplier. You have gone to the trouble of tendering the need, awarding a contract and then...nothing. Get them involved where possible in innovation, change management and development. They are not your enemy.
Since you asked for brainstorming, here are a few things I can think of (having been on both sides):
- offer incentives (volume, other opportunities,
- promote 'partnership', long-term involvement
- ensure that selection is not strictly on price and communicate it
- encourage collaboration (remember, there is a person on the other side)
- make responding easy (I often see RFX response requirements so difficult that I won't even bother submitting)
Put yourself into the supplier's shoe and answer the WIIFM (what's in it for me).
I hope this helps ;-)
Hi, sorry for the obvious sales pitch but we have a tool designed specifically for this; https://www.marketdojo.com/innovation-dojo/
Quite commonly, the contract signature is the end of the process for many procurement exercises, but are there many other opportunities being left on the table to capture and improve the service/offering from that supplier, and even other suppliers in the market?
In a similar vein, what SRM/SPM activities and processes do you have internally to drive additional benefits, and infom the supplier there are many opportunities to improve?