Gartner Research

Follow Gartner's T4 Process of Vendor-Specific Tactics, Templates, T&Cs and Timing to Optimize Negotiations

Published: 03 May 2017

ID: G00325528

Analyst(s): Melanie Alexander , Jo Ann Rosenberger

Summary

Sourcing and vendor management leaders must use a tailored negotiation planning approach to reveal and use vendor-specific data and levers. Gartner's T4 process provides these leaders four actionable steps to effectively use vendor-specific tactics, templates, T&Cs and timing to optimize deals.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • T1 — Tactics: Develop Negotiation Plans Collaboratively, Identify Viable Competitors and Third-Party Providers as Alternatives, and Seek Additional Vendor-Specific Data
    • One Negotiation Process Does Not Fit All Vendors
    • Create a Competitive Environment
    • Use Third-Party Maintenance Providers as Leverage
    • Seek Additional Vendor-Specific Data to Build Leverage
  • T2 — Templates: Create Customized Templates to Ask the Right Questions That Capture the Right Information for an Accurate Proposal and Total Cost Analysis
    • One Generic RFx Template Does Not Reveal Critical Vendor-Specific Data
  • T3 — T&Cs: Maintain Both a Standard and Vendor-Specific Set of T&Cs Checklists
    • Understand Vendor-Specific Master Agreements, Transaction Documents and Order of Precedence
    • Clarify Contract Nomenclature in Agreements and Addendums
    • Create and Maintain Relevant T&Cs Checklists Using Gartner Toolkits and Research
  • T4 — Timing: Use Vendor Fiscal Quarter-End and Year-End Dates as Leverage During the Negotiation Planning Process
    • Case Study: Strategic Use of Fiscal Year-End Dates for Bargaining Power
  • Follow Gartner's T4 Process to Realize Cost Savings, Avoid Unnecessary Costs and Negotiate Contracts With T&Cs That Protect Your Investments

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