Business negotiations - objectives versus supplier relations

We have written on more than one occasion about business negotiations - about the importance of adequate preparation, negotiation training and avoiding the “traps” set by “opponents”. This time we will focus on setting and achieving a goal. Is it always worth setting the highest goals? Is it worthwhile to be guided only by one's own interests in the negotiation process?

Importance of the objective business negotiations

Setting the objective of business negotiations is often a more difficult task than the negotiations themselves. Especially when supplier management has a huge impact not only on the company's costs, but also on its overall competitive strategy. And this is why the goal-setting process should be preceded not only by a detailed analysis of the market and the performance of current suppliers, but also by an analysis of the impact of the actions taken on creating market advantages - for example, increasing the company's level of innovation or building a positive customer experience. Market practice shows that analysing the value that a supplier provides to us and, on this basis, building the right relationship with him has a huge impact on the entire functioning of the company. Therefore, when setting negotiation objectives, it is also extremely important to recognise the supplier's needs. At the same time, it should be noted that „maintaining appropriate relationships” should mean aligning them with a long-term cooperation plan. Depending on the supplier, this could translate into offensive, defensive or partnership negotiations.

Business negotiations and supplier relations

Relationships with suppliers are also built during negotiation meetings. Can achieving an ambitious target have a negative impact on them? It turns out that yes. A 2013 study by US researchers led by Lei Lai of Tulane University showed the dark side of reaching high targets in negotiations. The research found that they can make suppliers feel uncomfortable and reinforce their resentment towards the purchasing organisation. This significantly limits the ability to develop relationships, take collaboration to higher levels - and ultimately further increase the company's competitiveness. Fortunately, there are a number of techniques to minimise feelings of dissatisfaction among business partners. According to The Eveneum Negotiation Method every negotiation should be concluded with the SATISFACTION of each party. But we will write a separate article about this.