‍Having successful supplier meetings
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Does it sound familiar? The salesperson on the other side of the table is a savvy professional and has a firm grip on the reins of your conversation. Especially in times of rising raw material prices and supply bottlenecks, negotiations with suppliers and subcontractors can be very lengthy and tough. 

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However, regular discussions are an essential prerequisite for maintaining a good relationship with the supplier. Whether in face-to-face meetings, on the phone or via video conference: in addition to technical expertise, communication skills and maintaining relationships are key to being able to represent your own interests to the supplier in the long term.

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Successful negotiations with suppliers require sensitivity and a great deal of experience. In addition to small talk and relationship management, topics such as prices, delivery conditions and avoiding supply bottlenecks are the key elements of such discussions. You need to weigh up very carefully how much you can expect from your supplier and how much you want to accommodate them. 

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Solid preparation is essential

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The aim of every supplier negotiation should be that you define goals together with your supplier and emerge from such a discussion as a partner. To achieve this, however, it is essential that a corresponding negotiation is professionally prepared, especially on the customer side. Carelessness in preparation can quickly become a stumbling block when it comes to the details in negotiations with suppliers. 

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Read more HERE our blog article on preparing for supplier meetings.

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After the preparation phase, it's now time for the actual meeting. Administrative matters, such as sending out the agenda or the supplier self-disclosure form, have already been dealt with and you have worked intensively on your personal goals for the meeting. But what do you need to bear in mind during the actual negotiation meeting? Below you will find a few helpful tips: 

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#1 Small talk and maintaining relationships are important - but be careful!

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In SMEs in particular, relationships between suppliers and customers are usually based on a long-term partnership. You don't have the time and resources to constantly seek out new suppliers and familiarize them with the company structures and requirements. That's why it can be worthwhile to build up a certain familiarity with the salesperson on the other side of the table and exchange a few words of small talk outside of the actual negotiation. This introduction also sets the tone for the entire negotiation and takes some of the seriousness out of the situation.

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However, it is also important to exercise a little caution here: Your counterpart conducts dozens of sales meetings every week and knows what a customer wants to hear. Keep an eye on your negotiation strategy and don't be impressed by a potential charm offensive.

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#2 Open the negotiation

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It is one of the oldest rules of negotiation in the world: whoever opens the conversation is in control from the very first moment and can steer the negotiation in a certain direction. Don't allow salespeople to praise their products to the skies and distract from the actual core issues. This method is common and should sensitize you for the later price poker. Direct the negotiations to the essential questions and problems and show that your meticulous data analysis has paid off!

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Analytics with Tacto - Learn more about the topic

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Once you have opened the conversation with a brief greeting, you can relax and devote yourself to your own agenda and work through it point by point. Of course, you can never predict exactly how the conversation will develop. However, with your agenda, you have a small reminder in your pocket and can always steer the conversation back in the right direction if necessary.

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#3 Arguing with the ZDF method

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As mentioned in our first blog post, solid data analysis is essential when preparing for the supplier meeting. How high is your purchasing volume? How is your delivery reliability? These and other questions should be clarified in advance. 

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Now it's time to bring the numbers to life. Make sure you back up your arguments with facts, figures and data (ZDF). Make it clear to your counterpart that you know at least as much as they do about their delivery times, purchasing volumes and price trends. This will ensure that you are well prepared to communicate your personally defined goals in the conversation.

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#4 Draw up a negotiation protocol

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Supplier relationships are usually designed to last for years or even decades. Over the years, there are several direct and indirect points of contact with a supplier. Regular negotiations are part of this.

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For this reason, it is worth taking minutes of the course and outcome of the discussions. If you have a detailed record of the negotiations, it also makes sense to have your counterpart sign it. This will prevent the salesperson on the other side from changing their mind and suddenly not remembering the conversation and their promises so clearly.

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#5 The focus is on the partnership

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Despite all the tactics and data analysis, one thing should not be forgotten: It's not just about you, but about achieving a situation that satisfies both parties. Successful buyers know this: Even in very tough and contentious negotiations, they achieve their goals more easily if they treat their interlocutors politely and with respect.

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Don't just pay attention to the price to be achieved in the current negotiation. Because squeezing your suppliers overlooks the opportunities that a long-term partnership can offer. Give your counterpart the feeling at all times that they are not just a cost factor, but above all a partner. Through recurring negotiations and a solid buyer-supplier relationship, savings potential will automatically arise at some point. And even better: sometimes even friendships!

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Good preparation is half the battle: Everything you need to know in the comprehensive Tacto checklist!

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We have compiled a comprehensive checklist for you with further questions and general assistance in preparing for your next supplier meeting.

Does it sound familiar? The salesperson on the other side of the table is a savvy professional and has a firm grip on the reins of your conversation. Especially in times of rising raw material prices and supply bottlenecks, negotiations with suppliers and vendors can become very lengthy and tough. Below you will find five practical tips on how to make your next negotiation with your supplier a success.