Negotiation Support
Effective negotiation starts well before the first meeting, with clear objectives, an understanding of the supplier's position and credible alternatives. Preparation turns a negotiation from a contest of positions into a structured discussion of value, on terms both sides can sustain.
We help procurement teams prepare and conduct high-value and high-risk negotiations: contract renewals, sole-source situations, price increase requests, subcontracting and contract manufacturing agreements, and the commercial recovery of contracts that have gone wrong.
Our approach
Define the objectives.
We separate what the organisation must achieve, what it intends to achieve and what it would like to achieve, across price, payment terms, delivery, warranty, support and risk. Price is rarely the only variable, and often not the most valuable one.
Understand the other side.
What does the supplier need from this contract? How important is the organisation as a customer, how full is the supplier's order book and what alternatives does it have? The answers show where the supplier has room to move and where it does not.
Prepare the alternatives.
The strongest position in any negotiation is a credible alternative. Where one does not exist, we look at what can be created in the time available: another supplier, a different specification, a split award or a phased approach.
Plan the concessions.
Each concession is priced and sequenced in advance, so that nothing is given away without something in return. Walk-away positions are agreed with the stakeholders before the first meeting.
Support at the table and after.
We prepare the negotiating team, support them in the room where appropriate and make sure that what was agreed is recorded accurately in the contract.
Key themes
Payment terms, advance payments and the currency of payment affect cash flow and financing cost rather than the unit price. We evaluate them alongside price, delivery and risk to understand their effect on the overall commercial outcome, and they give both sides more ways to reach an agreement.
When there is only one supplier able to meet the requirement, the usual levers do not work. Preparation becomes even more important: understanding the supplier's cost structure, the value of the relationship over time, the risks the supplier faces and the alternatives that could be developed in the longer term.
A negotiation that extracts every concession can cost more in delivery, quality and cooperation than it saved. For strategic suppliers, the outcome is measured over the life of the relationship, not on the day the contract is signed.
What we deliver
- Negotiation plan: objectives, priorities and variables
- Supplier position analysis
- Alternatives and walk-away position
- Concession plan
- Team briefing and role allocation
- Support during negotiation sessions
- Post-negotiation record and contract check
Related case studies
A negotiation coming up?
Tell us what is at stake and who is on the other side of the table.