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Contract negotiations with suppliers

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Negotiations is not just about the prices

Successful supplier contract negotiations are a critical aspect of procurement activities.

 

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 scene for agreements aligned with the client’s needs, making the actual negotiation process a natural conclusion of a larger process.

Why get negotiation support?

  • Get the right cost-quality ratio Altesia helps you find the right balance, ensuring you achieve optimal cost efficiency without compromising on quality.
  • Get expert support for additional weight Altesia’s procurement experts add weight to supplier discussions, bringing insights and benchmarks to strenghten your position
  • Streamline contract management Negotiation is not limited to individual contracts but should also be approached holistically. We help you take a portfolio-wide view.

How we prepare negotiations for success

Negotiations are the last mile of a marathon !

 

Our approach is built on meticulous negotiation preparation, covering four key elements that shape the outcome of any negotiation:

  • 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.

  • A holistic approach

    We also adopt a holistic approach to optimize your end-to-end contracting negotiation strategy.

     

    This implies:

    • 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 of a contract negotiation

At the end of the negotiation process, Altesia ensures that our clients achieve concrete and impactful outcomes, aligned with their strategic goals.

 

  • 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.

 

Don’t face your next negotiation alone

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.

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