PRO: Procurement Technology, Consulting Pricing Trends and Negotiation Strategies (Part 1)

Today on Spend Matters PRO, we launch the first in a series around procurement technology, consulting pricing trends, and negotiation strategies.

Summary

This 4-part series will provide a look at software provider and management consulting pricing trends and negotiation strategies within the procurement and operations area. It provides insight to buying organizations that may be helpful in negotiating with vendors such as Ariba, SAP, Oracle, Emptoris, Zycus and others, as well as recommendations for how best to engage with consultancies for price and value in the current environment. Summary takeaways and elements from the series include:

  • How companies should budget for upward price pressure for certain modules and suites in both new deals and potentially renewals
  • How certain modular areas have remained flat (and why now may be a good time to negotiate with certain providers in these markets)
  • The divergence of pricing strategies between certain providers and others
  • The best ways to use Ariba as a means of driving overall pricing down in a deal (if and only if a company is serious about using Ariba as an option)
  • Using SAP/Ariba uncertainty and post-acquisition integration to your advantage
  • Buyer versus supplier fees (and how to think about quantifying supplier fees in a total cost equation)
  • Approaches to negotiating for value with management consultants in a time of high demand and utilization with few bodies on the bench – which are probably not the ones you want on your project, anyway
  • Understanding the potential benefits of working with boutique firms in the services sphere

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- Jason Busch

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