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During the course of the discussion I provided background on Procurement’s roles and responsibilities and suggested rules for interacting with Procurement along with tactics for effective negotiations.
My suggestions for effectively interacting with procurement included:
- Be inclusive, don’t treat procurement like the enemy.
- Understand procurement’s key care-abouts.
- Eliminate mystery and inefficiencies.
- Be proactive, educate procurement about industry norms.
- Focus on long term gains…Play to “Win-Win.”
The tactics for effective negotiation that I spoke about included:
- Expect more, ask and demand more.
- Initiate dialogue on value before talking about money.
- Be stingy with concessions.
- Say “no” one more time.
- Provide alternatives on major sticking points.
In the current economic environment, clients are becoming even more focused on efficiencies. It is more important than ever for agencies to be open to and proactive in implementing process efficiencies, such as production decoupling, and communicating marketing value chain improvements.