PROCUREMENT
Negotiating the Best Deal Advocate for your best interests ! “ I moved forward to negotiate with a current contract manufacturer with whom we had an important volume commitment with high prices ,” said Elodie Cramer , Associate Director of Biogen . “ We were in a singlesource situation , with no active alternatives .” She opted to pursue dual sourcing , as well as insist on open vendor discussions . At the conclusion of the talks , she had bartered better terms : 29 % lower costs , 75 % less volume commitment , and improved vendor quality and service .
Additionally , teams should discuss details such as how to optimise taxes , meet regulatory compliance , and protect ESG standards . Safety-catch measures like these may seem to extend the outsourcing process , but they ’ ll ensure that you don ’ t end up spending more over the long term . Compliance , after all , can drive 30 % to 50 % of savings , and talking about it upfront is for the best for all concerned .
Closing the Case Once you ’ ve reached acceptable terms , you can Transition , handing the project work and resources over to your vendor , and Optimise , following up to manage and improve the relationship . Don ’ t forget to dot your i ’ s and cross your t ’ s — Deloitte even
42 August 2021