Sustainable procurement

The importance of negotiation in Procurement

It may sound obvious that negotiation is an important part of any procurement strategy, however there is more to negotiation than people sometimes think. Our clients often engage us to pick up IT sourcing projects that they don’t have the bandwidth or skill set to support and we are able to bring a wealth of negotiation experience to the table to drive the best commercial outcome.

Client

Bristol-based charity

Service

Resource & capacity

Sector

Healthcare

Problem

We were engaged by our client as they were looking to replace a long standing service support solution but lacked in house procurement resource and capability. Their spend was not large but they had some critical applications that needed support and were keen to find a local supplier who they could develop a real partnership with.

Solution

Working as part of the cross functional team, we ran an initial RFI (to narrow a large field of possible vendors down to a credible few), followed by a detailed RFP. Most of the negotiation took place after the preferred vendor had been identified as the complexity of the ‘ask’ meant that detailed discussions were required. Open dialogue with the shortlisted vendors ensured ongoing engagement and commitment on both sides and delivered the right partner with the best commercial position.

Results

A win-win outcome for both parties in the right timescale that ensured a managed exit from the existing vendor and a smooth transition to the new partner. The costs had been right-sized for the business requirements and the contract was detailed with all required services correctly scoped. The negotiation had delivered the right outcome for the client and set the relationship up for success.

 

Aster delivered far more than expected and I would have no hesitation in recommending them.”

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