Supplier Negotiations

Supplier Negotiations An Opportunity to Improve Profits_Page_01

Manage supplier relationships with a strategic approach to negotiations

In today's profit-conscious business environment, successful supplier negotiations are critical to implementing cost containment and profit improvement plans. Because of this, many leading companies are looking for ways to improve performance in this key area.


The typical organization spends almost 70% of its revenue on non-labor costs. A 1% reduction in those costs can increase profits by more than 4%, according to a recent study of Bloomberg data.

Any CFO will tell you that every penny saved in supplier negotiations falls immediately to the corporate bottom line.

To grow in today's global, competitive environment, businesses have to think differently about the role procurement plays in developing and maintaining supplier relationships.

Supplier negotiations have become more important to improving corporate efficiencies. Those who manage supplier relationships are increasingly expected to help their companies:

  • Drive savings through consolidation of supplier relationships;
  • Develop radically improved approaches to inventory management;
  • Meet aggressive quality standards; and
  • Protect intellectual property while ensuring access to leading-edge technology.

The goal of most supplier negotiations today is no longer just to get the lowest price. It is also to f ind new and innovative ways to meet a wide variety of business challenges, often by tapping into the knowledge and expertise of the supplier community.

Read our case studies:

Chemicals Industry Case Study

As one of the world’s leading global materials manufacturers, this client’s strategic goal was to maintain and grow profitability in the face of rising raw material costs, demanding customers, and constant competitive threats to profitable business – at the same time it needed to ask customers to accept price increases.

Chemicals Industry Case Study

Food & Agriculture Case Study

One of the top five privately held corporations in North America, this company faced an increasingly competitive and commoditized marketplace. Challenged to produce consistent and incremental profitability in its sales operations, management approached RED BEAR Negotiation to help increase overall business performance by closing more new business, improving account retention, and expanding the entire scope of services delivered to existing and prospective accounts—while increasing account profit margins.

Food & Agriculture Industry Case Study

Industrial Manufacturing Case Study

RED BEAR Negotiation was approached by a major player in the packaging and container industry to help build market share and profitability in the face of continuing pressures of declining prices, competition, and commoditization. The goal was to attain better results by enabling the sales organization to revisit price pressure and change the sales dialogue from price and commoditization to value and solutions in order to:

  • Capture greater share of wallet, and
  • Achieve critical revenue and profitability goals and meet Wall Street expectations
Industrial Manufacturing Industry Case Study

Computer Software Case Study

RED BEAR was approached by a global leader in collaborative software facing flat sales performance and stagnant earnings growth. New sales leadership was determined to shift its distribution focus—both direct sales and reseller partners—from selling transactional point products to building strategic relationships characterized by enterprise-wide product and service solutions. Dramatic changes were needed to attain the goals of:

  • More strategic customer relationships (and more million-dollar deals).
  • Improved close ratios and revenue predictability.
  • Greater overall sales force productivity.
Computer Software Industry Case Study

Energy & Chemicals Case Study

This Fortune 1000 company with its unique mix of chemical business lines believed it could produce superior sales results through disciplined execution of the right strategies and activities. They asked RED BEAR Negotiation to help them achieve incremental profitability and sales growth by instilling a new sales execution discipline that would help them capture new opportunities and increase performance against competitors.

Energy & Chemicals Industry Case Study

Battle-tested with leading enterprises globally.

Trusted, forward-thinking companies around the world, across every industry, from the Fortune 500 to high growth start-ups rely on RED BEAR to transform their people into world-class negotiators.