Effective procurement negotiations in the downturn
Issue 1, 2009
Strategy, Operations management

The squeeze is on for subassembly manufacturers. Sharp declines in demand for the products of their customers has left them under heavy pressure to reduce their prices, and the only way they can do that is by ensuring lower prices from their own suppliers. But getting substantial price reductions without risking the survival of your precious supply chain is no simple matter, and it requires the best possible negotiation skills. This article sets out five rules for negotiations that will ensure that your company finds its way through this difficult procurement situation and emerges with both lower prices and an intact supply chain.