2010-10-18-奥纬咨询-Five_Questions_Retailers_Must_Answer_to_Negotiate_Effectively_6页_635kb

Summary of "5) How do your negotiations with Supplier X affect your colleagues?"

• Holistic Negotiation Approach: Coordinating all category managers involved in negotiations ensures that decisions impact the overall financial performance, preventing suppliers from offsetting savings. This involves designating a 'point person' to unify strategy across cross-category interactions.

• Impact on Colleagues: Understanding how negotiations affect colleagues depends on interdependencies, such as shared funding structures and supplier portfolios spanning multiple categories. Poor coordination can lead to inconsistent strategies and negative outcomes for team members managing related areas.

• Leverage Data for Negotiating Power: Retailers should stop relying solely on suppliers for data and utilize their own internal information, such as sales and financial records, to drive better deals. This enables retailers to negotiate with greater insight, offering incentives and restructuring supplier panels based on solid analysis.

• Benefits: A comprehensive understanding, derived from data and coordination, unlocks value by preventing cost increases from one category manager affecting others, ultimately safeguarding the retailer's interests and supporting collective goal achievement. This approach aligns with Oliver Wyman's expertise in retail performance improvement.