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Unlocking better deals and terms with suppliers is an art. Learn how to master negotiation skills with suppliers using Bitrix24. #NegotiationSkills #SupplierManagement #Bitrix24 #Procurement #SupplyChain #BusinessNegotiation #SupplierRelations #businesssolutions

No Vendor Policy. Many companies, especially those who are still in its infancy are operating at the mercy of their vendors’ customer service. So, if their vendor or supplier decides to increase the price of the raw products or supplies that they usually order, they have no choice but to pay for it. When deliveries are delayed, they wait and charge no extra fee for the vendor. But, you can avoid this thing from happening if you only come up with a good vendors policy and communicate this to your suppliers or vendors. Give your vendors a copy of a document detailing these policies so that they will be aware of what they will be agreeing to whenever they conduct business with your company. These are just a few of the many supplier issues that a company is bound to experience especially if they are still new in the industry. All these issues may not be resolved overnight but what is more important is to take action and not wait for these issues to get out of hand. I hope you will like this article 👍🏻 https://lnkd.in/d_aTZEtz

10 Proven #Strategies to Successfully #Negotiate with #Suppliers: 1. Research and understand your supplier’s business 2. Stay on top of market trends 3. Building strong relationships with suppliers 4. Communicate your needs clearly 5. Consider the total value, not just the price of services 6. Be open to compromise 7. Prepare acceptable alternatives 8. Use volume as a bargaining tool 9. Negotiate favorable payment terms 10. Regularly review and renegotiate contracts + #Bitrix24: The launchpad for successful negotiations with suppliers 😉 Read the #article on our website to find out more about the topic: https://lnkd.in/guEWHTre!

Long-term relationships with vendors can be advantageous. Vendors are more likely to offer better pricing or terms to clients who have proven to be reliable and fair. Regular communication and a history of prompt payments can establish trust. Consider this when making one-off purchases versus establishing a long-term supplier relationship that may offer better pricing stability and priority service.

he Cost of 'Cheap' vs. The Power of Smart Choices Shocking Truth: 82% of supply chain disasters are caused by vendor failures! Choosing the wrong vendor for the sake of short-term savings can lead to costly long-term consequences. Don't gamble with your business - here's the step-by-step system for smart vendor selection. Deep Dive: Avoiding Vendor Selection Pitfalls: Know Your Enemy: The Hidden Costs Shipping, tariffs, maintenance...these add up! A recent KPMG study found hidden costs can inflate vendor prices by up to 35%. The Power of References: Don't be fooled by sales pitches. Talk to a vendor's past clients – they'll reveal the true performance story. Define It to Win It Vague specs = Mismatched expectations. Involve your technical team for precise RFPs. This saves time and money. Audits Matter Site visits show whether the vendor can actually deliver what they promise. Trust, but verify! Contracts Are Your Shield Negotiate strong SLAs (delivery, quality). This gives you leverage if things go wrong. Partnership, Not Transaction Vendors are an extension of your team. Collaborate, communicate, and reap long-term rewards. Hidden Costs in Vendor Selection: Beyond the Price Tag Don't be fooled by a low initial quote! Hidden costs lurk in several areas: Shipping & Logistics: Surcharges, customs fees, insurance, and port delays add up. Maintenance & Repairs: Factor in spare parts, labor, downtime, and long-term wear and tear. Quality Issues: Defects, rework, extra testing, and potential brand damage cost you more. Admin Overheads: Communication barriers, staff time spent troubleshooting, and legal disputes drive up costs. Opportunity Costs: Missed sales, lost competitive edge, and strained resources due to vendor issues hurt your bottom line. How to Uncover Hidden Costs Ask the Right Questions: Include specific questions about potential extra charges in your RFP. Negotiate Total Cost: Aim for a "total landed cost" model for transparency. Review Past Invoices: Learn from other clients' experiences. Involve Experts: Tap into the knowledge of your logistics, quality control, and finance teams. Smart choices now prevent costly surprises later! Don't leave vendor selection to chance! Share this post and help others make informed choices. #vendors #supplychain #procurement #riskmanagement #smartbusiness

Lets understand how purchasers can negotiate a better deal with supplier Negotiating better deals with suppliers is crucial for businesses to enhance their profitability and operational efficiency. Here are some strategies that can help businesses negotiate better deals with their suppliers: 1. Do Your Research: Understand the market and industry trends. Research your supplier's business, including their financial stability, reputation, and performance history. 2. Build Strong Relationships: Cultivate a good working relationship with your suppliers. A positive relationship can lead to more favorable terms. Regular communication can help in understanding each other's needs and concerns. 3. Volume Commitments: Offer to increase the volume of your orders in exchange for better pricing. Suppliers may be willing to provide discounts or more favorable terms for larger and consistent orders. 4. Negotiate Payment Terms: Negotiate longer payment terms to improve your cash flow. Conversely, offering quicker payment in exchange for discounts may also be beneficial. Consider using electronic payment methods to streamline transactions. 5. Explore Multiple Suppliers: Having multiple suppliers for the same product or service gives you leverage in negotiations. Suppliers may be more willing to negotiate if they know you have alternatives. 6. Leverage Long-Term Contracts: Consider negotiating long-term contracts with suppliers. This provides stability for both parties and can result in more favorable terms. However, be cautious and ensure the contract is flexible enough to adapt to changing circumstances. 7. Highlight Your Value as a Customer: Emphasize your value as a customer, especially if you have a strong and consistent purchasing history. Suppliers may be more willing to provide concessions to retain your business. 8. Benchmarking: Compare the terms you're getting with industry standards. This information can be valuable during negotiations. Benchmarking helps you understand if your current terms are competitive or if there's room for improvement. 9. Negotiate More Than Price: Look beyond price and negotiate other terms, such as delivery schedules, quality standards, and warranty terms. Sometimes, non-price concessions can be more valuable than a lower price. 10. Stay Informed About Market Conditions: Be aware of changes in the market, such as fluctuations in commodity prices or economic conditions, that may impact supplier costs. Use this information to negotiate more effectively. 11. Be Prepared to Walk Away: If negotiations are not yielding the desired results, be prepared to explore other options. The willingness to walk away can strengthen your position and demonstrate that you have alternatives. Remember, Both parties should benefit for a sustainable and mutually beneficial relationship. Effective communication, transparency, and a collaborative approach are key elements of negotiations. #negotiation #purchasemanagement

Let's Tech it up! Topic: How do you know? This has been a question of mine for as long as I can remember. When we sit down with vendors, be it a GPO or Direct Purchasing and Distribution. How do you know you're getting the best price? Healthcare can negotiate based on two criteria: volume or market share. Let's face it: that is the easy part. How do you know which is best? Market share is a good negotiation trick, but how much is it worth? Do you have the data? I have negotiated many contracts on market share. I would use the "vendor of choice" and provide>50%, dividing the rest of the market among the outliers. This would achieve great pricing until the vendor wants to create a new pricing book. You can either renegotiate the price or freeze pricing for X#years to shield against the old "CPI Adjustment" or new book changes🤔🚩. Be prepared to meet resistance to that tactic. Volume is another tip, but again, what is the value? It is humorous how the vendors explain the value without comparing it to other HCOs; I found that strange. I would hear, Tim, you're getting the best price on I-25, and I would answer that it was a very short highway and there are no other hospitals on I-25 😉 The same applies to volume discounts; vendors want to hold you to a # per year or quarter, knowing very well I just broke my crystal ball and can't predict the future, and they want to justify a price increase on my hospital not living up to the volumes. 🚩 This is when I place the "termination of the agreement without fault or penalty clause." Vendors love that one. 😂 Rebates—yeah, right. Who has the time or the technology to track that? Some like the rebate model; I do not—price at the pump—less administrative headaches. Honestly, it is not my position to worry about commissions or if the vendor makes $ 2 billion vs. $ 2.5 billion in profits. I am the gatekeeper of my HCO's Supply Expense; they didn't hire me to give it away. 💰💵💯 It is easy to differentiate vendors that want to be part of the solution and those that do not; my biggest adversary is not the rep but their boss; it is a challenge that I wholeheartedly accept, irritating them at the negotiation table, right or wrong, is fun. 😉 I love their phone calls the last week of every quarter; they are the nicest people in the world. 💵😂 I know some of you can relate, and others may not, but it is the world of Supply Chain Management, the second most significant expense in many hospitals. As a whole, healthcare spends over $4 trillion (2022). That kind of money attracts attention. 🔭🔬 My only solution advice is TECH IT UP to get an advantage. Challenge Accepted! Tim #healthcaresupplychain #supplychainmanagement #materialsmanagement #healthcarefinance #healthcaretechnology #CFO #CEO #CIO Paradigm Venture Group LLC

Lets understand how purchasers can negotiate a better deal with supplier Negotiating better deals with suppliers is crucial for businesses to enhance their profitability and operational efficiency. Here are some strategies that can help businesses negotiate better deals with their suppliers: 1. Do Your Research: Understand the market and industry trends. Research your supplier's business, including their financial stability, reputation, and performance history. 2. Build Strong Relationships: Cultivate a good working relationship with your suppliers. A positive relationship can lead to more favorable terms. Regular communication can help in understanding each other's needs and concerns. 3. Volume Commitments: Offer to increase the volume of your orders in exchange for better pricing. Suppliers may be willing to provide discounts or more favorable terms for larger and consistent orders. 4. Negotiate Payment Terms: Negotiate longer payment terms to improve your cash flow. Conversely, offering quicker payment in exchange for discounts may also be beneficial. Consider using electronic payment methods to streamline transactions. 5. Explore Multiple Suppliers: Having multiple suppliers for the same product or service gives you leverage in negotiations. Suppliers may be more willing to negotiate if they know you have alternatives. 6. Leverage Long-Term Contracts: Consider negotiating long-term contracts with suppliers. This provides stability for both parties and can result in more favorable terms. However, be cautious and ensure the contract is flexible enough to adapt to changing circumstances. 7. Highlight Your Value as a Customer: Emphasize your value as a customer, especially if you have a strong and consistent purchasing history. Suppliers may be more willing to provide concessions to retain your business. 8. Benchmarking: Compare the terms you're getting with industry standards. This information can be valuable during negotiations. Benchmarking helps you understand if your current terms are competitive or if there's room for improvement. 9. Negotiate More Than Price: Look beyond price and negotiate other terms, such as delivery schedules, quality standards, and warranty terms. Sometimes, non-price concessions can be more valuable than a lower price. 10. Stay Informed About Market Conditions: Be aware of changes in the market, such as fluctuations in commodity prices or economic conditions, that may impact supplier costs. Use this information to negotiate more effectively. 11. Be Prepared to Walk Away: If negotiations are not yielding the desired results, be prepared to explore other options. The willingness to walk away can strengthen your position and demonstrate that you have alternatives. Remember, Both parties should benefit for a sustainable and mutually beneficial relationship. Effective communication, transparency, and a collaborative approach are key elements of negotiations. #negotiation #purchase #effectiveness

There is a well-marked path for buying new hardware, and by comparison, the secondary market can feel difficult to navigate. Ask yourself these questions while going through the purchasing process. #procurement https://lnkd.in/eryTEUsq