From the CIPS (Chartered Institute for Purchasing & Supply) Annual Conference 2012. Kings Place, London. Learn to negotiate better deals and have better relationships with your internal customers and suppliers alike.

1. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012
All
too
o&en
buyers
trap
THEMSELVES
into
PRICE
FOCUSED
nego2a2ons,
which
actually
end
up
being
a
FOOL’S
ERRAND
in
maximizing
value.
Total
cost
nego2a2ons
that
produce
a
healthy
short
and
long
term
win-­‐win,
both
INTERNALLY
and
with
the
SUPPLY
CHAIN
require
a
more
sophis2cated
mindset
–
not
necessarily
more
DIFFICULT,
just
more
THOUGHTFUL…

2. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012
Mike
Inman
Partner
with
TableForce
Formerly
a
head
of
global
procurement
for
MGM
Resorts
Interna2onal
and
IAC/InterAc2veCorp
Transforming
Your
Nego0a0ng
Success!

3. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012
Before
anything,
please…
turn
off
the
voice
inside
your
head
counter
intuiEve

4. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012
45
minutes
=
2
opportuni0es
Clients
Cost
vs.
Price

5. In
associa0on
with:
Transforming
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By:
Nego0a0ng
Success!
©
TableForce
2012
Clients
Their
“sheet
of
paper”

6. In
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2012
Communicate
Communicate
Communicate
1.
Seek
to
understand
their
vision
and
goals
-­‐
and
learn
THEIR
language
-­‐
Lean
6-­‐Sigma
operator
vs.
“entrepreneurs”
2.
Translate
YOUR
vision
and
goals
into
THEIR
language
-­‐
Mimic
3.
Speak
WITH
them
in
their
language
regarding
how
the
relevant
points
of
your
vision
and
goals
relate
to
suppor2ng
them
in
achieving
theirs…
-­‐
Different
approaches:
-­‐
Finance
=
reduce
COST
…
-­‐
Marke2ng
=
get
as
much
VALUE
as
possible
from
the
FULL
budget

7. In
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2012
# of large hospitality customers in Las Vegas 1.0 1.0 1.0 5.0 5.0 3.0 3.0
# of technicians certified on product in Las Vegas 2.0 2.0 4.0 4.0 8.0 4.0 8.0
Local field service management team 3.0 3.0 9.0 3.0 9.0 2.0 6.0
Local service inventory quality and availability 4.0 4.0 16.0 2.0 8.0 3.0 12.0
After hours support structure 5.0 5.0 25.0 1.0 5.0 4.0 20.0
Customer service support structure 1.0 1.0 1.0 5.0 5.0 2.0 2.0
Price per port 2.0 2.0 4.0 4.0 8.0 3.0 6.0
Price per technician 3.0 3.0 9.0 3.0 9.0 4.0 12.0
Vendor training 4.0 4.0 16.0 2.0 8.0 2.0 8.0
Vendor manufacturer support 5.0 5.0 25.0 1.0 5.0 3.0 15.0
System alarming (NOC) services 1.0 1.0 1.0 5.0 5.0 4.0 4.0
Core business hours 2.0 2.0 4.0 4.0 8.0 2.0 4.0
Discount on product (hardware and software) 3.0 3.0 9.0 3.0 9.0 3.0 9.0
Time and Material 3.0 3.0 9.0 4.0 12.0 4.0 12.0
PBX Maintenance Options
1. # of large hospitality customers in Las Vegas
25
14. Time and Material 2. # of technicians certified on product in Las Vegas
20
13. Discount on product (hardware and software) 3. Local field service management team
15
10
12. Core business hours 4. Local service inventory quality and availability
5
0
11. System alarming (NOC) services 5. After hours support structure
10. Vendor manufacturer support 6. Customer service support structure
A B

8. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012

9. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012
Did
I
men0on
communicate?
Own
the
communica2on
plan
with
suppliers
1.
CONTINUE
to
speak
your
internal
customers
language
2. Take
80%
of
the
“burden”
off
of
your
internal
customer
-­‐
be
INTENTIONAL
3. How
and
when
we
communicate
is
a
cri2cal
SIGNAL
to
suppliers
-­‐
The
suppliers
“voice”
says:
“why
are
they
talking
to
me”

10. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012
Group
hugs
all
around
Give
ALL
the
credit
to
your
client
Men2on
strategic
“wins”
and
value
FIRST
Cost
savings
LAST
-­‐
IF
AT
ALL
From:
Inman,
Mike
To:
C-­‐Team
Subject:
Re:
Agency
of
Record
results
To
respond
to
your
ini2al
request,
before
looking
at
the
fees
(and
I
assume
you’re
also
looking
for
the
associated
reduc2on)
I
think
we
were
able
to:
1)
get
a
fantas2c
agency
(supported
by
more
objec2ve
criteria
than
just
“they’re
very
crea2ve”
–
aaached
is
the
final
evalua2on)
2)
improve
the
service
offering
(adding
strategic
planning
and
web)
3)
increase
the
amount
of
work
we
expect
the
agency
to
perform
(both
strategic
and
tac2cal)
4)
reduce
the
risk
contractually
(as
they
are
new
and
hungry,
we
were
able
to
get
very
favorable
terms
to
reduce
our
risk
of
going
with
them,
something
that
would
have
been
more
difficulty
with
the
incumbent
agencies)
and
lastly,
reduce
costs…

11. In
associa0on
with:
Transforming
Your
By:
Nego0a0ng
Success!
©
TableForce
2012
Cost
vs.
Price
Tradi0onal
thinking
Price
=
Cost
+
Profit

12. In
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2012
Profit
Waste
Material
Overhead
Price
SG&A
Labor

13. In
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2012
Think
about
how
LITTLE
most
sellers
are
truly
allowed
to
nego2ate

14. In
associa0on
with:
Transforming
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By:
Nego0a0ng
Success!
©
TableForce
2012
Price
Cost
-­‐ Profit
Price
=
Cost
+
Profit
Change
the
equa0on!

15. In
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By:
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Success!
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2012
Profit
Waste
Material
Overhead
Price
Cost
SG&A
Labor

16. In
associa0on
with:
Transforming
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By:
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Success!
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2012
Start
by
understanding
that
you
as
the
buyer
drive
cost:
specifica2ons
requirements
demands
designs

17. In
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2012
Priced
based
example:
Spend
=
£1M
/
year
Profit
=
5%
(£50,000)
Maximum
nego2ated
value?

18. In
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2012
Cost
based
example:
10
delivery
loca2ons,
7
days
/
week,
52
weeks
/
year
Average
truck
wait
2me
=
2.5
hours
at
each
loca2on
Driver
cost
=
£25/hour,
truck
cost
=
£10/hour
Total
delivery
cost
=
£875
/
day
or
£319,375
/
year

19. In
associa0on
with:
Transforming
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By:
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Success!
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TableForce
2012
WHAT
IF…
We
moved
the
inspec2on
point
to
the
suppliers
dock?
Gave
a
“line
pass”
and
reduced
wait
2me
to
10
min
max?
Changed
delivery
to
3x
per
week
New
delivery
cost
=
£70
/
day
or
£10,920
/
year!

20. In
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By:
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Success!
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TableForce
2012
Price
based
scenario:
£50,000
max
=
5%
an
UNHAPPY
supplier
and
client,
EVENTUALLY
…
Cost
based
scenario:
£319,375
-­‐
£10,920
=
£308,455
=
30+%
a
happy
supplier,
client,
and
FINANCE
and
BOSS

21. In
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Success!
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2012
Where
do
these
ideas
come
from?
Trusted
suppliers
Teammates
looking
beyond
price

22. In
associa0on
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By:
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Success!
©
TableForce
2012
In
closing
TAKE
RISKS
Be
willing
to
TRY

23. In
associa0on
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Success!
©
TableForce
2012
Thank
you!
Ques0ons?
Mike@TableForce.com