Dealing with a Unique Supplier While You Don't Have Negotiation Power

Kraljic Model
Knowledge Center

 
Kraljic Model > Forum

New Topic


Jimmer Campos
Colombia
Sometimes you have to close a negotiation process but you donīt have any negotiation power because your volume for purchasing is low, while your supplier is unique for the project or service you need. How could you get the best conditions or minimize the risk? How do you engage this unique supplier in the market to pay attention to your requirements? How are you going to get advantage during the negotiation process or is there no negotiation at all? What must you develop to reduce future risks? The unique supplier in the future could stop the deliveries and that could have a high impact in your supply chain... Did you play this game? Please share your experiences and developments. (...) Read more? Sign up for free

  Koen Vandermarliere
Business Consultant, Belgium
 

Negotiating with Powerful Suppliers

I encounter this situation often with suppliers in ICT.
What I usually do is:
Your power in the negotiations will not be buying power but the power of information. I use Porter's 5 Forces Analysis to look at the vendor's position regarding competition, new entrants, substitution of his product, his suppliers and his customers.
I make our company as interesting as possible to him. As a reference in a tough market, as a door opener, joint developments...
Then there is the person you are negotiating with; what are his interests, what is his position in the company, did he make his sales figures...
On the risk side... Cover your bases using SLA, KPI, etc. But think out of the box, are there any other techniques, alternatives? Should you foresee buffer stocks, a stable supply for at least X months...? Do I have any impact on his supply ?
It is not an easy game, but one that is much more satisfying then the standard x% additional discount game.

  Hamad Al Sadd Al Ali
Student (MBA), United Arab Emirates
 

Power of Marketing

I think it is the power of marketing. You see, the (...)

  Koen Vandermarliere
Business Consultant, Belgium
 

Dutch Windmill

An interesting reading on this kind of misfits bet (...)

  Dr zahra gheidar
Consultant, Iran
 

Selling Education in Developing Countries

My experience is, about a controversial offer: "ed (...)

  Josephat Olwal Ngesah
Kenya
 

Bargaining Power of the Supplier

I agree with you Jimmer that finding yourself in s (...)

 

More on Kraljic Model
Summary
Forum
What is Purchase Marketing?
Beyond the Steady State
Sustainability Criteria in Purchasing Strategy
Types of E-Procurement Tools
E-Procurement Strategy per Category
Controlling the Supply Chain in an Unstable Environment
Rate Contract versus System Contract
Software Procurement & Automotive SPICE
Tips on Managing a Procurement Department
Generic Purchasing-Decision Model
🔥Kraljic Model for Similar Product Comparison
Strategic Process for Global Sourcing
Backward Integration in Procurement Positioning Matrix
Buygrid Framework (Robinson)
Collaboration Styles of Purchasing Managers
Extensive Bargaining in Procurement Positioning Matrix
From Company Strategy to Purchasing Strategy to Commodity Strategy
Procurement Outsourcing in Procurement Positioning Matrix
Product Re-engineering in Procurement Positioning Matrix
Criteria for Supplier Categorization
Dominant Purchasing Factor: Quality or Price?
Best Value Performance Information Procurement System (Best Value PIPS)
Kraljic Template & Manual
The TIME Factor in Procurement and Logistics Negotiations
Dealing with a Unique Supplier While You Don't Have Negotiation Power
Best Practices
Examples of the 4 Product Categories of Kraljic
Public Procurement Process
Factors to Analyse a Purchasing Portfolio Beyond those in the Kraljic Model
Special Interest Group
Koen Vandermarliere
Business Consultant
Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:


Kraljic Model
Knowledge Center

 


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
Đ 2021 12manage - The Executive Fast Track. V15.7 - Last updated: 27-1-2021. All names ™ of their owners.