Gartner Research

Harness the Power of Information to Drive Better Procurement Contract Negotiation Results

Published: 09 February 2016

ID: G00299044

Analyst(s): Marie Sienkowski, Rob Wilkes

Summary

Successful negotiations require protecting stakeholder information while assembling intelligence on vendor priorities and positions. Technology procurement leaders can use these tips to collect, develop and control the flow of information to optimize spending and satisfaction with vendor agreements.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Know Your Stakeholders' Needs, Wants, Target and Walk-Away
    • Inoculate Stakeholders Against Vendor Upselling
    • Differentiate Needs From Wants, and Define Negotiation Targets and Walk-Away Positions
    • Create Your Plan B
  • Know Your Vendors' Wants and Needs
    • Determine Which Products or Services Are Most Strategic to the Vendor
    • Ask Your Sales Team About Their Quotas, Targets and Deadlines
    • Identify Elements That Are Low-Effort or Low-Cost for You but Valuable to the Vendor
  • Control the Flow of Information
    • Educate Stakeholders to Be Judicious About the Information They Share With Suppliers
    • Keep Tight Control Over Communications While Vendors Are Competing for Business, Right Up Until Any Contract Is Signed
    • Maintain a Communication Plan to Make Use of Your Executive's Influence in the Most Critical Procurement Projects

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