Procurement, Negotiating, and Contracting Axioms
I'm trying to develop a "fun" list of self-explanatory and illuminating procurement, negotiating, and contracting axioms. If you have any axioms that you think are particularly interesting, fun, or true-to-life in a tongue-in-cheek way, please post your comments or e-mail me at stephenguth@vendormanagementoffice.com and I'll put together a complete list of axioms for all to enjoy.
Contributed Axioms:
- Procurement. Begin with the End in Mind.
- If You Don’t Manage the Vendor the Vendor will Manage You
- Negotiation? Preparation, Preparation, Preparation!
- Knowledge = Power = Negotiation Leverage
- There is a Direct Relationship Between Urgency and Money Left on the Table
- Money Creates Abnormal Behavior
- The Smaller the Deal, the Greater the Legal Risk
- 20% of Vendors Account for 80% of Spend
- 20% of Vendors (Usually Different from Those Above) Account for 80% of Your Headaches
- You Can’t Manage What You Don’t Measure
- Something Will Go Wrong
- A PDF Contract Template From a Vendor is a Leading Indicator of the Future (Poor) Relationship
Contributed Axioms:
- In negotiations, time is money. Use time wisely to save yourself money. Don't jump on the first offer tooquickly. (Thanks to Gordon G. Benning,Sr., American Financial Group. I agree,time is probably the most critical element of negotiations.)
- When for savings opportunities, pick up the fish on thebeach first. (Thanks to DaleBartholomew, NRECA. An underlyingmessage here is that if you don’t take the easy savings, they get “stinky” andsomeone else will notice that you haven’t done your job as a procurement pro.)
Great topic. I wish I thought about it for my own blog.
I'll be sure to market this post for you on LinkedIn and Twitter.
Reply to this