Negotiating Skills in the e-Procurement & AI era

We live in a world which to a large extent is governed by data. Analysts generate deep insights from data and these insights assist us on what we call “data driven decision making”. The procurement decision making process specifically has been further automated by e-RFQ’s and e-Auctions. Organizations have quickly adapted these technologies which when integrated over the existing layer of ERP systems optimize operational efficiency. With AI, ML and RPA adding one more layer of technology, we are convinced that e-Procurement and data driven decision making has blurred out the conventional negotiating process.

The above argument stands true on most counts with routine procurement activities where cost is the primary driver. When we expand this discussion to strategic procurement, the above process may deliver on some objectives but falls short of delivering long term value.

Strategic procurement is driven by trust, relationships, mutual dependency and ability to create value for all stakeholders. These intangible aspects of strategic procurement decision making makes us realize the importance of conventional negotiations which the technology layers cannot comprehend.

Procurement leaders are also expected to manage many complex scenarios during product innovation, capacity assessment, conflicts, deadlocks, stringent targets etc. The decision making process in these tough situations has to consider objectives of multiple parties and their positions on specific issues. The layers of technology cannot independently tide over such tough situations.

It is evident that procurement leaders have to find the fine balance between data driven decision making and the use of conventional negotiation practices. The challenge is how we integrate conventional negotiations to silently operate below the technology layer and deliver strategic outcomes for the organization.

The M I N T Negotiating Programs recognise these complexities and are designed to facilitate procurement leaders and organizations to -

• Understand, prepare and plan negotiations from an all-party perspective
• Design negotiation strategies and execute them, using a resilient framework
• Expand the value pie when possible; and simply claim an honorable share
• Develop and sustain human and strategic relationships
• Develop strength in the Organization itself, to rough it out in tough Negotiating environments,rather than in one or two ‘heroic’ individuals who are the ‘designated’ Negotiating Process Champs
• Overcome possible deadlocks, barriers, resistance, and obstacles far more easily, using easy-to-use-and-remember practical tools and an effortless, caring approach

Let’s start negotiating…