IT system and business negotiations with suppliers

We have covered the use of IT systems in building a purchasing strategy and ongoing supply chain management several times on our blog. However, an IT system can also be used as a tool to help prepare for business negotiations with suppliers. And for at least two reasons.

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

Potential suppliers, i.e. market data

IT system is an excellent tool for collecting market data. A database of potential suppliers, trends in price terms and delivery times - this is information that is worth collecting and then using in negotiation processes. There is much more data worth collecting from the market. Among the most useful is information on the development potential of suppliers - both in the R&D area and in the organisational and financial areas.

Remote self-assessment system for potential suppliers

Of course IT system can be fed with data by purchasing staff. However, more innovative solutions allow potential suppliers to carry out an initial self-assessment. The supplier self-assessment process can be divided into several stages. The first is a commercial audit of quality, timeliness, cost, technology and management. The next is for the potential supplier to determine its willingness to accept the terms and conditions of the collaboration and the purchasing organisation's current CSR policies.

Data, data, data

The data collected, both those entered by employees purchasing department as well as from supplier self-assessments, provide excellent material for preparing the negotiation process. The availability of all the information in one system, combined with the possibility to analyse it immediately, is a great support for negotiators. It enables them to set objectives in line with the needs of the organisation, define a negotiation strategy and then monitor its implementation.