{"id":3289,"date":"2020-04-10T20:42:00","date_gmt":"2020-04-11T00:42:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2014\/04\/10\/50-quick-procurement-tips\/"},"modified":"2023-11-30T11:09:35","modified_gmt":"2023-11-30T15:09:35","slug":"50-procurement-tips-for-the-100th-day-of-2014","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/50-procurement-tips-for-the-100th-day-of-2014\/","title":{"rendered":"50 Quick Procurement Tips"},"content":{"rendered":"

Do you sometimes forget even the simplest procurement best practices? \u00a0Here are 50 quick procurement tips to refresh your memory!<\/p>\n

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  1. \u00a0Your supplier\u2019s first impression of you impacts how much you will be able to persuade that supplier in a negotiation.<\/li>\n
  2. \u00a0Require suppliers to complete and return a Notice of Intent to Participate<\/a>\u00a0provided in your RFP so you can predict participation.<\/li>\n
  3. \u00a0Identify the risks to achieving your terms, timeline, and other goals and plan to mitigate those risks.<\/li>\n
  4. \u00a0Anticipate your supplier\u2019s reaction to each tactic.<\/li>\n
  5. \u00a0Create tiered risk\/rewards scenarios for Service Level Agreements.<\/li>\n
  6. \u00a0See if the supplier has implemented a leading quality improvement program like Lean, Six Sigma, or Lean Six Sigma.<\/li>\n
  7. \u00a0Determine the format (i.e., face-to-face, phone, etc.) and location of your negotiation sessions.<\/li>\n
  8. \u00a0Regular oversight can ensure that your global suppliers are behaving properly and reduce risk for your organization.<\/li>\n
  9. \u00a0Don\u2019t make your offer seem like a predictable negotiation tactic.<\/li>\n
  10. \u00a0Factor internal customers\u2019 interests into supplier selection criteria.<\/li>\n
  11. \u00a0Find out what motivates the vendor and make it win-win.<\/li>\n
  12. \u00a0Create an agenda for the negotiation and practice.<\/li>\n
  13. \u00a0Develop a timeline for the negotiation process.<\/li>\n
  14. \u00a0Identify your second-best option in case you cannot reach agreement with your primary supplier.<\/li>\n
  15. \u00a0For each metric, determine the value that would separate \u201cgood\u201d performance from \u201caverage\u201d or \u201cmediocre\u201d performance in your particular situation.<\/li>\n
  16. \u00a0Analyzing suppliers\u2019 \u201cfinancials\u201d is a critical activity in supplier qualification.<\/li>\n
  17. \u00a0Look for small \u201cvalue adds\u201d to enhance the deal.<\/li>\n
  18. \u00a0Self-assess after each negotiation session and adjust strategy and tactics if necessary.<\/li>\n
  19. \u00a0Identify the risks to achieving your terms, timeline, and other goals and plan to mitigate those risks.<\/li>\n
  20. \u00a0Check if the supplier has a quality-related certification like ISO9001.<\/li>\n
  21. \u00a0Develop and share internally a communications plan stating who must be updated on negotiation progress and what information they must keep confidential.<\/li>\n
  22. \u00a0Comply with your employer\u2019s policy on accepting gifts, meals, and entertainment from suppliers.<\/li>\n
  23. \u00a0Ensure\/insist that the supplier assigns a negotiator with decision-making authority.<\/li>\n
  24. \u00a0Review notes from previous negotiations, courses, etc. for tips for success.<\/li>\n
  25. \u00a0Start the negotiation confidently.<\/li>\n
  26. \u00a0Evaluate the probability of political unrest in the supplier\u2019s country including uprisings, war, or sanctions by your country.<\/li>\n
  27. \u00a0Knowing how direct costs, overhead, and profits comprise suppliers\u2019 prices gives you a negotiating advantage.<\/li>\n
  28. \u00a0Decide what to concede if necessary to reach agreement.<\/li>\n
  29. \u00a0Evaluate the probability that the supplier will covertly use prohibited materials (e.g., lead paint).<\/li>\n
  30. \u00a0Agree on an objective price adjustment method for the future.<\/li>\n
  31. \u00a0Evaluate the likelihood that the supplier\u2019s quality performance will not be within acceptable limits.<\/li>\n
  32. \u00a0Identify changes that you can make that will help you improve your numbers. If you already exceed the standard, aim even higher!<\/li>\n
  33. \u00a0Evaluate the probability of new legislation that would require a design or materials change.<\/li>\n
  34. \u00a0Invite the primary supplier to negotiate and learn who the supplier\u2019s principal negotiator is.<\/li>\n
  35. \u00a0Evaluate the probability of work stoppages (i.e., strikes) for multiple tiers of suppliers.<\/li>\n
  36. \u00a0Identify all the terms that you will negotiate.<\/li>\n
  37. \u00a0See if the supplier uses parts-per-million (ppm) as its quality unit of measure, not percent defective.<\/li>\n
  38. \u00a0Define the criteria for being a good purchasing professional<\/a>.<\/li>\n
  39. \u00a0Set targets and least acceptable alternatives for each term.<\/li>\n
  40. \u00a0Never buy or hold the stock of your employer\u2019s suppliers.<\/li>\n
  41. \u00a0Research the probability of a natural disaster (e.g., proximity to fault lines, hurricane belt, flood plains, etc.) in the supplier\u2019s region.<\/li>\n
  42. \u00a0Determine your overall negotiation strategy<\/a> (e.g., hardball, collaborative, etc.)<\/li>\n
  43. \u00a0See if the supplier\u2019s quality efforts are focused on preventing defective items from being produced.<\/li>\n
  44. \u00a0Never share a supplier\u2019s proposal details with another supplier unless required by law.<\/li>\n
  45. \u00a0Investigate how a safety issue (e.g., fire, explosion, accident, etc.) might disrupt supplier production.<\/li>\n
  46. \u00a0Prohibit maverick buying<\/a>\u00a0as a company policy.<\/li>\n
  47. \u00a0Investigate if the supplier has a documented record of continuous quality improvement over several years<\/li>\n
  48. \u00a0Identify at least one secondary source in the event of a failure of the primary supplier.<\/li>\n
  49. \u00a0Evaluate the probability of the supplier going bankrupt or experiencing financial challenges.<\/li>\n
  50. \u00a0At the end of the negotiation, help the supplier feel positive about the new relationship rather than feeling like it lost the negotiation.<\/li>\n<\/ol>\n

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    Recommended Reading<\/strong>:<\/p>\n