The main premise is that you win in negotiations if you have the leverage. While that is true in most cases, it doesn’t always have to be the determining factor in securing what you want.
When negotiating a logistics contract, it is critical to know what it is that you’re after – better pricing, improved service expectations or perhaps flexibility built-in for times uncertain. The point here is when you know what you’re aiming for it’s much easier to create your negotiations strategy.
Once you’ve outlined the objectives for your negotiation, it’s time to approach your logistics provider. Whenever you’re negotiating for anything, it’s helpful to place yourself in the shoes of your counterparty – it forces you to see things from the other party’s perspective and also jump starts the creative process of identifying solutions to your demands.
Making your ask known to the supplier is the next step. It’s best to clearly outline what it is that you aim to achieve and the broader reasons behind it – if that’s possible or allowed. When you contextualize your demands and involve your counterparty in the rationale of your demands, it automatically makes them part of your problem-solving journey.
Depending on where you currently are in relationship management stage with your supplier, might determine how involved and willing your counterparty will be in addressing your demands. If you’ve invested in building a collaborative and positive relationship with your supplier, then this might improve your chances of landing a compromise or a straight win much quicker.
In summary, a good approach to contract negotiations is to identify your demands, communicate them clearly to your logistics supplier and involve them in the creative process of finding the best possible solution – for both sides.
Drop us a comment if you’ve found this helpful or if you have a story to share from your experience in negotiating.