A recent study showed that around 82% of supply chain leaders agreed that supply chain challenges would worsen or stay the same over the next year.
In our article 5 Ways to Improve Procurement Strategies in 2023, RED BEAR instructor Shawn Malone outlines the current complex environment procurement professionals have to navigate while offering some concrete and actionable insights to tackle ongoing supply chain risks.
Whether it’s strained carrier relationships or issues with reshoring efforts, organizations with the right negotiation processes in place are in an advantageous position to stay ahead and succeed.
Let’s explore some of the key points in the article and discover how RED BEAR Negotiation Training can make all the difference in these tense negotiation environments.
Dissecting Five Key Strategies in Procurement for 2023
What does it take to build stronger relationships? How can procurement professionals navigate the turbulent waters of 2023 and come out on top?
Here are a few key points to consider:
- Align procurement with overall business strategy
- Establish a set process with built-in support, compliance, and controls
- Proactively and strategically manage supply chain risks
- Achieve cost control and savings through tension management
- Unlock innovation from the supplier base
Shawn outlines these points in depth in his piece. But, to get you a quick overview, here is what you need to know.
First, it’s important to understand the power of aligning procurement strategies within an organization. At RED BEAR, we use Strategic Alignment to fine-tune and tailor the training process to meet your specific business goals and organizational demands.
Understanding the power of procurement alignment is one task, but establishing the right negotiation processes is another. With RED BEAR, our goal is to instill in your team the fundamental negotiation methodology and processes to help you succeed in all aspects of a negotiation.
Understanding the fundamental principles and behaviors of negotiation can help your team tackle all kinds of challenges, like shipping delays, rising costs, geopolitical risks, and even natural disasters.
With the right training, your team can adopt a creative approach to problem-solving to meet the changing industry demands and external pressures.
Much of what an organization will need to navigate is out of its control.
Take inflation. Getting to cost savings in an inflationary environment requires individuals to understand the power of setting high aspirations while also knowing the full range and strength of their power.
RED BEAR teaches teams to leverage these principles and master the tension of a negotiation.
This leads to tangible business outcomes like better supplier relationships.
Taking into account both the competitive and collaborative aspects of negotiation, procurement professionals can open the door to better agreements. To do this, they need to manage information skillfully.
This can be a tricky task. Shawn explains that “skilled negotiators ask three times more questions and talk a third of the time.”
“Skilled negotiators ask three times more questions and talk a third of the time.”
To learn more about these strategies, be sure to review the full article here.
Fortifying the Five Strategies
Is your team ready to fight inflation, supply chain disruptions, and geopolitical risks?
The power of negotiation training from RED BEAR means your team is prepared to navigate the often tumultuous issues facing procurement professionals.
Our training focuses on establishing the right processes based on tested principles and behaviors.
The end result? A team that is ready to tackle any negotiation challenge.
As a real-world example, let’s explore how RED BEAR helped an industrial manufacturing client manage supply chain issues.
Driven to maintain and increase profitability, today’s suppliers are increasingly savvy negotiators. This contributes to the increased costs of goods sold.
With RED BEAR Training, this client was able to understand the power of planning and establishing the right negotiation processes to master supply chain challenges. As they explain, establishing these processes “means that you will be more successful every time.”
Navigating supplier relationships takes a strategic approach to negotiation.
The typical organization spends almost 70% of its revenue on non-labor costs. A 1% reduction in those costs can increase profits by more than 4%.
By focusing on the principles and best practices established during a RED BEAR training session, organizations can accomplish several key goals during supplier negotiations:
- Drive savings and consolidate supplier relationships
- Develop optimized approaches to inventory management
- Meet aggressive quality standards
- Protect assets like intellectual property
- Access cutting-edge industry technology
In today’s modern supply chain environment, it’s critical for organizations to recognize the value of investing in and supporting their teams.
It’s more than just establishing the right negotiation processes, though; it’s also about keeping the best talent.
Around 94% of employees say they would stay at a company longer if it invested in their career.
With the right tools, training, and negotiation processes, organizations can negotiate from a position of strength and build supplier agreements that reflect the strategic business goals of their company.
They can also keep the best and brightest by showing commitment to their growth.
Dive Deeper into Procurement Negotiation Mastery
Our article on mastering procurement negotiations can offer your team valuable insights into what it takes to navigate the issues of 2023.
But, to get the most out of your team and provide value, you need to grasp the importance of investing in training.
With RED BEAR, you get tailored and experiential learning experiences that your team won’t soon forget. Our goal isn’t to provide you with cookie-cutter negotiation strategies. Rather, we want to provide the framework to build strong supplier relationships and master every negotiation.
RED BEAR offers Procurement Negotiation Training from experts, including former Fortune 500 Chief Procurement Officers (CPOs) and Vice Presidents.
To get a full picture of the procurement negotiation landscape in 2023, be sure to explore Shawn Malone’s full article on Supply & Demand Chain Executive.
