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Manage FF&E specification, procurement, and product data at scale. Take on bigger projects with confidence and grow your firm with Fohlio. Schedule a demo or book a consultation with one of our account managers to explore these features today.
In today's increasingly costly project landscape, optimizing value from your suppliers is essential, necessitating adept supplier negotiation skills. Effective supplier negotiation begins with meticulous preparation, and this is where purchasing analytics and procurement analytics play a crucial role. Armed with the right data, you can confidently lead your negotiation efforts, especially in FF&E procurement scenarios. Here are three key data points to empower your supplier negotiation strategy:
1. Number of alternative suppliers
Relying solely on one supplier for specific products can pose significant risks. Imagine a scenario where your primary supplier fails to meet your needs. To mitigate such risks, it's advisable to maintain alternative suppliers, a strategy supported by purchasing analytics. Not only does this provide a safety net for unexpected disruptions, but it also offers leverage during negotiations.
The mere presence of alternative suppliers can compel your current supplier to be more receptive to FF&E procurement negotiations, particularly if you have a history of being a loyal and recurring customer.
Learn more: How to Simplify Vendor Management -- Tips From Leading Hotel Brands
Keep a list of your favorite and alternative suppliers with Fohlio’s contact book feature.
Read: How to Measure Construction Procurement Success: Basic Key Performance Metrics
2. Lead Time
Assess the lead time required by your suppliers to fulfill orders. Excessive lead times can lead to substantial project delays, making it a critical consideration in supplier negotiation, especially in FF&E procurement. In such cases, you can propose mutually beneficial arrangements. Offer to absorb the risk associated with extended lead times in exchange for extended services or discounts on upcoming orders.
This demonstrates your commitment to a fruitful long-term partnership, backed by procurement analytics insights.
Learn more: 8 Ways to Streamline Delivery Lead Time for FF&E and OS&E
3. Your volume of past orders
How do you prove your company to be a loyal customer if you don’t keep tabs? Back when there wasn’t any software like Fohlio, keeping track of your past orders was impossible. Order taking and fulfillment was a hand-to-mouth kind of thing, meaning, that it was something you couldn’t get any future value from. Not anymore, fast forward to the present day, there is now a multitude of ways on how you can keep track of your present and past orders so that the next time you come face-to-face with a supplier, you can ask for a discount through having a record of your past purchases. This could be leverage because it proves that you are a recurring customer worth building a relationship with. (This works even with those big-league suppliers, trust us!).
Read: New Features: Track Status and Revisions in Purchase Orders
Manage FF&E specification, procurement, and product data at scale. Take on bigger projects with confidence and grow your firm with Fohlio. Schedule a demo or book a consultation with one of our account managers to explore these features today.
