Discuss and agree upon a clear process for how both parties will prepare for and conduct the negotiation. Identify, discuss, and plan for relationship issues that may be encountered during a negotiation. For a market relationship, the negotiation launch can be as simple as a pamphlet outlining to potential suppliers how the customer prefers to negotiate, as well as suggestions and ground-rules. For an intermediate or partnership relationship, the negotiators and other key stakeholders may need to spend two or three days in an off-site program to discuss these issues. Many customers understand the importance of getting their supplier relationships off to a good start, but few actually do.
Customers generally assume that such activities are the vendor's responsibility.
Proactive customers who want to ensure that they maximize the value of their supplier arrangement standardize their approach to launching supplier relationships, and insist that launches do happen. Jointly define the key characteristics of a successful working relationship, and ensure that all have a common picture of what such a relationship would look like in action. Design metrics and tests for monitoring the above. Build on the relationship due diligence process, discuss likely challenges, and design and agree to relationship management mechanisms. Ensure that all those responsible for implementation understand the overall structure of the deal, and why specific choices were made.