Reverse Negotiations: Maximizing Value Beyond Cost-Cutting

Outsourcing is a common strategy for focusing on core business functions. However, reverse negotiations challenge the traditional view by putting a spotlight on the innovation and value that outsourcing partners bring to the table.

This article delves into:

• How to identify and leverage the strengths of your partners.
• Ways to enrich your value chain and provide more to your customers.

“Understanding your partner’s evolving capabilities can lead to breakthroughs in value creation for your customers and forge stronger, more productive relationships.”

Learn about the concept of reverse negotiations and how it can lead to a win-win for both your business and your suppliers.

Cost optimisation has and will remain the primany objective of negotiations for any procurement professional. Partners providing outsourced products & services face a constant challenge to optimize cost and stay competitive in a crowded market. There comes a point where such partners crumble under this pressure resulting in supply chain failure.

Now let’s look at a scenario where procurement professionals proactively engage with such partners to understand thier evolving capabilities. It is important for supply chain leaders to identify opportunities and upskill existing partners for additional high value scope.

One industry that has immensely benefitted from this practice is facility management services. Organisations in this space started by providing basic services like canteen, housekeeping and security. Soon procurement leaders started consolidating more scope starting from non-technical services like office assistants & reception staff to higher value technical services of utilily operations and maintenance, fire safety & data entry staff. Another example is the transition of BPO’s into KPO’s providing high value services. This not only gives a top tine boost to these partnerss but also is a much necessary shot in the arm for the bottom line. Would like to hear how you have leveraged such opportunities to create more value for existing partners to ensure a sustainable supply chain.