Our Research

Customer Supplier Negotiation Study

Jonathan Hughes, Elizabeth Rayer, and Mark Gordon
August 2009

This study, conducted in partnership with The Conference Board, Institute for Supply Management (ISM), the International Association of Contract and Commercial Management (IACCM), and Sales and Marketing Executives International (SMEI), compares buy-side and sell-side perspectives on achieving better negotiated outcomes and sheds light on the factors that lead to those outcomes.

A few key findings highlighted include:

  • Procurement organizations with a formal negotiation process report achieving 27% more of the value they target through strategic sourcing efforts
  • Companies that use a more collaborative (versus adversarial) negotiation process realize greater value from their contracts
  • Organizations that systematically develop negotiation strategies that are aligned with their category management and supplier relationship management strategies report realizing 59% more value from their supplier contracts.