Skills for Negotiating in Supply Chain Projects

Your negotiation metrics are outdated and costing you dearly. Forget spreadsheets; success goes beyond numbers. Here you’ll have seven powerful metrics, recommended by 𝗛𝗮𝗿𝘃𝗮𝗿𝗱’𝘀 𝗣𝗿𝗼𝗴𝗿𝗮𝗺 𝗼𝗻 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 (𝗣𝗢𝗡), to redefine success in your negotiations. This will boost your profits, partnerships, and strategic impact. After advising executives from global companies like ABB and transforming negotiation strategies for over 30 years, I’ve seen how outdated metrics silently erode value. Most companies measure negotiation outcomes with overly simplistic financial indicators: • Higher rates • Bigger contracts • Short-term gains But here’s the costly truth:  ↳ This narrow focus risks long-term profitability, reputational damage, and missed strategic opportunities. Harvard’s Program on Negotiation (PON) recommends evaluating negotiations with these seven powerful metrics: 1️⃣ Relationship (separate people from the problem): ↳ Does your negotiation build relationships by clearly separating interpersonal issues from substantive problems? 2️⃣ Communication (Listen actively and empathize): ↳ Are discussions focused on understanding the other side’s perspective, actively listening, and demonstrating empathy to solve issues constructively? 3️⃣ Interests (Identify shared and divergent interests): ↳ Does the negotiated outcome effectively address your core interests, your counterpart’s key interests, and relevant stakeholders’ interests? 4️⃣ Options (Create value through joint gains): ↳ Have you jointly brainstormed multiple creative solutions aimed at maximizing mutual gains and expanding the negotiation pie? 5️⃣ Legitimacy (Use objective criteria): ↳ Is the agreed solution backed by objective criteria, standards, or precedents, ensuring fairness and acceptability for all parties involved? 6️⃣ BATNA (Best Alternative to Negotiated Agreement): ↳ Is your negotiated agreement demonstrably superior to your best alternative if the negotiation fails? 7️⃣ Commitment (Clear and realistic implementation): ↳ Are the negotiated commitments detailed, clear, realistic, and actionable, ensuring both parties understand their roles and responsibilities? Companies embracing these comprehensive metrics don’t just close deals; they build enduring competitive advantages. Redefine your negotiation success metrics now. Use these seven dimensions to evaluate your next negotiation. Your future bottom line will thank you. What’s your favorite metric for measuring negotiation success? Share in the comments. ♻️ Found value here? Please repost. Let’s raise negotiation standards together. 

"We have budget for $199,000," the procurement manager spat at me. I had a $325,000 deal forecasted, and we had 7 days left to close it. That was June, 2020. End of quarter. Egg about to be smeared all over my face. I paced around my house while my family swam at the pool. Cursing under my breath. Back then, I knew every negotiation tactic in the book. But that was the problem: My negotiation "strategy" was actually what I now call "random acts of tactics." A question here. A label there. Throw in a 'give to get.' There was no system. No process. Just grasping. Since then, I now follow a step by step process for every negotiation. Here's the first 4: 1. Summarize and Pass the Torch. Key negotiation mistake. Letting your buyer negotiate with nothing but price on their mind. Instead: Start the negotiation with this: “As we get started, I thought I’d spend the first few minutes summarizing the key elements of our partnership so we’re all on the same page. Fair?” Then spend the next 3-4 min summarizing: - the customer's problem - your (unique) solution - the proposal That cements the business value. Reminds your counterpart what's at stake. They might not admit it: But it's now twice as hard for them to be price sensitive. After summarizing, pass the torch: "How do you think we land this plane from here?" Asking questions puts you in control. Now the onus is on them. But you know what they're going to say next. 2. Get ALL Their Asks On the Table Do this before RESPONDING to any "ask" individually. When you 'summarize and pass the torch,' usually they're going to make an ask. "Discount 20% more and we land this plane!" Some asks, you might want to agree to immediately. Don't. Get EVERY one of their asks on the table: You need to see the forest for the trees. “Let’s say we [found a way to resolve that]. In addition to that, what else is still standing in our way of moving forward?” Repeat until their answer is: "Nothing. We'd sign." Then confirm: “So if we found a way to [agree on X, Y, Z], there is nothing else stopping us from moving forward together?" 3. Stack Rank They probably just threw 3-4 asks at you. Now say: "How would you stack rank these from most important to least important?” Force them to prioritize. Now for the killer: 4. Uncover the Underlying Need(s) Ignore what they're asking for. Uncover WHY they're asking for it. If you don't, you can't NEGOTIATE. You can only BARTER. You might be able to address the UNDERLYING need in a different, better way than what they're asking for. After summarizing all of their 'requests,' say this: “What’s going on in your world that’s driving you to need that?” Do that for each one. Problem-solve from there. P.S. These 7 sales skills will help you add an extra $53K to your income in the next 6 months (or less) without working more hours, more stress, or outdated “high-pressure” tactics. Go here: https://lnkd.in/ggYuTdtf

Struggling to lower supplier rates? I found a proven way to negotiate better deals. Here’s how to make it work. Most people negotiate with suppliers the wrong way. They focus on cutting costs and end up losing the relationship. Here’s the truth: great negotiation isn’t about paying less—it’s about creating mutual value. Here’s a step-by-step approach to get better rates without burning bridges: → Understand their priorities. Your supplier isn’t just focused on price—they care about long-term contracts, reliability, and operational efficiency. Ask questions to understand what matters most to them. → Leverage volume or consistency. Suppliers love stability. If you can promise larger orders or long-term contracts, they’ll often give you better pricing in return. → Do your homework. Before negotiating, understand the market rates, your supplier’s competitors, and what’s driving costs in their industry. This positions you as informed—not pushy. → Frame it as partnership, not demand. Use language like, 'How can we work together to make this mutually beneficial?' It turns negotiation into collaboration. → Offer win-win terms. If they reduce rates, offer to pay faster or commit to a longer agreement. Every concession on your part makes your ask feel fair. You’ll never win in business if you view suppliers as expendable. Treat them as partners, and they’ll treat you as a priority.