IT system vs business negotiations with suppliers

On our blog, we have repeatedly discussed topics related to the use of IT systems in building a purchasing strategy and ongoing supply chain management. However, the IT system can also be used as a tool to help prepare business negotiations with suppliers. And for at least two reasons.

The first is the ability to collect and analyze valuable data from the market.

Potential suppliers, the market data

The IT system is the perfect tool for collecting market data. Database of potential suppliers, trends in terms of pricing and delivery dates – information that is worth collecting, and then used in negotiation processes.

Data that should be collected from the market is much more. The most useful are information about the development potential of suppliers – both in the R & D area as well as in the organizational and financial area.

Remote self-assessment system of potential suppliers

Of course, an IT system can be powered by data by employees of the purchasing department. However, more innovative solutions make it possible for potential suppliers to carry out initial self-assessment.

The supplier self-assessment process can be divided into several stages. The first of them is a commercial audit in the field of quality, timeliness, costs, technology and management. Another is the determination by the potential supplier of readiness to accept the terms of cooperation and the CSR policy in force in the organization.

Data, data, data

The collected data, both those introduced by employees of the purchasing department and from self-assessments carried out by suppliers, are an excellent material for the preparation of the negotiation process. The availability of all information in one system, combined with the possibility of their immediate analysis, provides great support for negotiators. Thanks to it, they are able to set goals in line with the organization’s needs, define a negotiation strategy and then monitor its implementation.