@Risk

New research from Vantage Partners, in partnership with the International Association of Contract and Commercial Management (IACCM), the Institute for Supply Management (ISM), The Conference Board, and Sales and Marketing Executives International (SMEI), highlights the importance of building systematic and collaborative negotiation strategies with suppliers. I’ve posted before about how collaborative suppler relationships are fundamental to any risk management program, and this study takes it a step further, deep diving into the business value close relationships can provide, particularly with regard to contract negotiations.
Specifically, the study found that organizations which have aligned their negotiation strategies with their category management and supplier relationship management strategies realize 59% more value from their supplier contracts, compared to organizations that do not formally define negotiation strategies. Unfortunately, though, until companies upgrade their negotiation strategies, most of the value expected to result from strategic sourcing efforts remains unrealized.
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