A 21-Point Negotiation Checklist
PurchTips edition #204
By Charles Dominick, SPSM, SPSM2, SPSM3
Can A Negotiation Checklist Improve Your Results?
As we teach in our online course "Powerful Negotiation For Successful Buying," preparing for a negotiation is critical for success. Though not intended as a substitute for learning how to prepare or actually preparing, this checklist can guide your preparation for great results.
- Identify the primary supplier to negotiate with.
- Identify your second-best option in case you cannot reach agreement with your primary supplier.
- Determine the format (i.e., face-to-face, phone, etc.) and location of your negotiation sessions.
- Invite the primary supplier to negotiate and learn who the supplier's principal negotiator is.
- Ensure/insist that the supplier assigns a negotiator with decision-making authority.
- Assess your leverage over the supplier.
- Determine your overall negotiation strategy (e.g., hardball, collaborative, etc.).
- Identify all the terms that you will negotiate.
- Set targets and least acceptable alternatives for each term.
- Determine your negotiation tactics (e.g., threatening to use another supplier, emphasizing the benefits to the supplier of doing business with you, etc.).
- Decide what to concede if necessary to reach agreement.
- Develop a timeline for the negotiation process.
- Identify the risks to achieving your terms, timeline, and other goals and plan to mitigate those risks.
- Develop and share internally a communications plan stating who must be updated on negotiation progress and what information they must keep confidential.
- Review notes from previous negotiations, courses, etc. for tips for success.
- Anticipate your supplier's reaction to each tactic.
- Create an agenda for the negotiation and practice.
- Start the negotiation confidently.
- Document agreements made and share with the supplier throughout the negotiation process to ensure that no misunderstandings later derail a negotiation in which you have invested much time.
- Self-assess after each negotiation session and adjust strategy and tactics if necessary.
- At the end of the negotiation, help the supplier feel positive about the new relationship rather than feeling like it lost the negotiation.
Do You Want a More Rewarding Procurement Career?
Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.
Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM® Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!
Need Better Performance From Your Procurement Team?
Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.
You need a performance improvement plan that's easy to implement and quick to produce results. The NLPA can help.
Download our whitepaper "The Procurement Leader's Guide To A More Successful Team." You'll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.
Are You Getting The Most Out of Your NLPA Membership?
Members of the NLPA get more than just articles like this by email. As a member, you also get access to:
- The Procurement Training & Certification Starter Kit
- The latest Purchasing & Supply Management Salaries Report
- Leading-Edge Supply Management™ magazine
- Members-only webinars 10x per year
- And more!
If you haven't been taking advantage of these benefits, why not log in and start now?
Copyright 2010. This article is the property of Next Level Purchasing and may not be copied or republished in any form without the express written consent of Next Level Purchasing.
Click here to request republishing permission.