Contract negotiations with suppliers
Successful supplier negotiations are a critical aspect of procurement actvities.
While negotiations often concentrate solely on costs, Altesia ensures a comprehensive approach that also includes :
- securing quality and supply,
- managing risks,
- fostering strong supplier relationships.
Effective negotiations also encompass much more than the final contract discussions; in fact, 90% of a negotiation's success lies in thorough preparation.
Altesia’s meticulous preparation phase sets the scenefor agreements aligned with the client’s needs, making the actual negotiation process a natural conclusion of a larger process.
Your needs
Get the right cost-quality ratio
Altesia helps you find the right balance, ensuring you achieve optimal cost efficiency without compromising on quality. Our negotiations also cover other essential aspects depending on your needs (eg. delivery times, business continuity, and more).
Get expert support for additional weight
Getting help from Altesia’s procurement consultants can add significant weight to discussions with suppliers. Our external expert perspective brings objectivity and enhanced credibility, driving better outcomes for your business.
Streamline contract management
Negotiation is not limited to individual contracts but should also be approached holistically across your entire contract portfolio. We help you streamline your supplier base to enhance your negotiation power.
How we help you
At Altesia, we approach negotiation as part of a comprehensive procurement strategy, focusing on meticulous preparation and strategic supplier management. negotiations are the last mile of a marathon!
This preparation phase applies when negotiating specific contracts, and includes:
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Collaborative goal setting:
We define negotiation objectives with all internal stakeholders, validating them throughout the process. This involves close collaboration with technical, production, quality and legal teams. -
Pressure and concession points:
Together with our clients, we establish pressure points (desired outcomes) and concession points (acceptable compromises). This includes negotiating on delivery times, commercial terms, costs, service levels, and ESG considerations. -
Thorough validation:
We ensure all negotiation parameters are based on a detailed analysis of the client's current situation, enhancing the effectiveness of the negotiation process.
We also adopt a holistic approach to optimize your end-to-end contracting negotiation strategy.
This implies:
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Spend analysis:
We categorize and map expenditures to identify optimization opportunities, -
Reducing the number of suppliers:
Based on the supplier categorization, we reduce the number of suppliers to increase volume and enhance negotiation power.
The result
At the end of the negotiation process, Altesia ensures that our clients achieve concrete and impactful outcomes, aligned with their strategic goals.
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Agreement alignment:
We ensure that the final agreements align with the predefined pressure and concession points, providing clear, actionable terms. -
Negotiation roadmap:
We provide a comprehensive roadmap outlining key arguments and strategies to effectively navigate the negotiation process. -
Optimized supplier portfolio:
The outcome is a de-risked supplier portfolio with enhanced quality-price ratios, leading to more efficient and effective supplier relationships.
What we don't do
If it doesn’t serve you, we don’t do it. We don’t need to show off or engage in unnecessary complexities just to look smart and boost our fees. This is why we follow those principles:
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No unattainable solutions:
We don't propose unrealistic solutions.
Our meticulous preparation and robust methodology ensure that every negotiation is set up for success. -
No negotiation for sport:
We don't negotiate prices just for the sake of it.
Our goal is to optimize your supplier portfolio for the long term, focusing on quality and efficiency. Maintaining good supplier relationship is key to achieving this and shouldn’t be compromised.
