Procurement Magazine September 2021 | Page 41

PROCUREMENT STRATEGY

“ A lot of procurement people believe that they ' re getting it all , but they may have conceded on things that they shouldn ' t have conceded on ”

MARK RAFFAN , THE NEGOTIATIONS NINJA
This also means that it can optimise not only for the single deal but for the span of the deals , which drives more efficiency , which means they can save more money . So , it ' s going to happen . At what point in time it becomes beyond that tactical spend level , I don ' t know , but starting to integrate technology earlier rather than later , is going to save you a lot of headaches , especially when it comes to fast-moving items that you have good data on .
LVG : “ They say that the days of beating the supplier over the head for better pricing are behind us . Do you agree or disagree with that ?”
MR : “ I would agree in the sense that it should never be and should never have been only about pricing . It should be about significantly more than that because if we ' re arguing over price , then , generally speaking , that ' s a series of diminishing returns . If I beat someone up consistently over price , they may give me the price that I ' m looking for , but then what are they giving me in return for that ? Originally we may have contracted for the AA team to be able to come in and do the work , but now are they giving me the DD team as a result . So I think it needs to be about significantly more than price . It ' s about the total value that the organisation can provide .” procurementmag . com 41