Why Operations Leaders Are Perfect for Procurement Negotiations

You Own Procurement Now

Insight from Vendr 

Your engineering team is crushing it, shipping code and building features at lightning speed. But then, a new challenge appears on the horizon - it's time to negotiate a big, hairy, multi-year software contract.

And who gets thrown into the ring to duke it out with the vendor? That's right, it's you.

Now, I know what you might be thinking. "But wait, I'm a back office person, not a salesperson! I don't know the first thing about negotiating deals or evaluating software tools!" And trust me, you're not alone.

In fact, findings from software developer ZIP’s Trends in B2B Purchasing report reveal that more than three quarters (79%) of companies face challenges in the actual purchasing process of new B2B software and services.

But here's the thing - as an operations leader, you have unique skills and knowledge that make you the perfect person to handle these negotiations.

And I'm not just talking about your ability to crunch numbers and build processes (although that certainly comes in handy).

First, you have the best understanding of your company's situation. You know when you've raised a big round of funding and can afford to pay for contracts upfront to get a better deal.

You also know when cash is tight and need to push for more favorable payment terms or delay a purchase until the next quarter.

You also:

• Have visibility into the bigger picture of your company's tech stack and vendor relationships

• Can spot opportunities to consolidate tools into a single vendor to save money and reduce complexity

• Know when different departments are trying to buy overlapping solutions and can step in to coordinate.

Getting involved in vendor negotiations gives you the opportunity to learn more about the inner workings of your business and build stronger relationships with your colleagues.

I can't tell you how often I've sat in on a product demo and walked away with a much deeper understanding of how our engineering or growth teams work.

Of course, negotiating software deals is no walk in the park. It takes time, effort, and a willingness to push back and ask tough questions.

So, the next time a big vendor negotiation lands on your desk, don't panic. Embrace it as an opportunity to flex your negotiation muscles and show your colleagues what you're made of.

And if anyone gives you any flak, tell them you're channeling your inner Chris Voss, the world's greatest negotiator. They'll be so impressed, they won't even know what hit 'em.

Learn More: The best book on negotiating I’ve read