ProcurementAlert.com » What to do when they sneak around your back

What to do when they sneak around your back

January 5, 2009 by Charlie Walker
Posted in: In this week's e-Newsletter, Latest News & Views, Procurement costs, Procurement trends, Purchasing decisions

Sneakiness is an admirable trait if you happen to be a sniper, a basketball player or even a lawyer. But when you have to start dealing with sneaky folks, your job gets much more difficult.

Most times, your toughest sneaky challenges come from beneath your own roof.

The biggest problem? When people in other departments — like, oh, let’s say Sales — take it upon themselves to cut their own deals with suppliers.

Fortunately, there are ways to battle back (without injuring any co-workers).

Here’s  a three-part strategy that’s proven to be successful:

  • Explain what’s wrong, and why it hurts. Believe it or not, there are cases where these folks might have thought they were saving a little time or even doing you a favor.  In a calm, non-confrontational fashion, meet with the offending party and explain why their actions can (and often do) lead to trouble. These situations can even cause frustrated suppliers to leave you, if they can’t duplicate the “great deal” they got last time around. Once your colleague understands the problems, enlist that person to work with you on further negotiations with the supplier.
  • Line up your ducks. Catalog the price(s) your company typically pays for these goods or services. Track the history. Document the prices other companies pay suppliers, or compare your price with industry benchmarks. At the very least, suppliers will realize they shouldn’t expect ongoing price breaks of the nature.
  • Get something in return. It’s unlikely suppliers will budge on the price, at least this time around. Instead, look for areas that can be negotiated: longer warranty, better service contract, extended payment terms, or even future breaks in price or service that work to your advantage.
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