In an increasingly competitive and results-driven environment, negotiating based on data is essential to achieving greater savings in purchases.
When integrating analytics and market intelligence to the purchasing process, companies transform information into a competitive advantage, anticipate opportunities and negotiate in a more strategic and assertive way.
According to the study "The era of advanced analytics in procurement has begun," by McKinsey & Company, organizations that apply advanced analytics to their negotiations record between 3% and 8% additional savings compared to traditional models.
Data-driven negotiations allow you to identify savings opportunities, anticipate trends and strengthen your trading power. negotiation with suppliers.
More than just reducing one-off costs, this approach builds a solid foundation for sustainable and predictable results.
Below, check out 7 practical, data-driven negotiation strategies that can boost savings and increase the maturity of your purchasing department:
1. Use historical data to set savings goals
Before opening a new round of negotiations, delve into your company's purchasing history. Analyze price fluctuations, supply cycles, and past partner performance.
This information helps to establish Purchasing KPIs and provide solid arguments when renegotiating.
2. Compare proposals with the support of analytical maps
Manually comparing suppliers is a thing of the past. Tools like Comparative Map of the ME, offer a complete overview of the proposals, highlighting differences in price, term, taxes and commercial conditions.
With structured data, the buyer reduces subjectivity and conducts negotiations based on facts, not just assumptions.
3. Identify consumption patterns
By integrating analytics solutions into the purchasing process, you can view consumption patterns by category, unit, or period.
These insights reveal opportunities for consolidating demands and allow for negotiation with greater volume power, increasing savings potential.
4. Monitor supplier performance
Effective negotiation is also a result of relationship strategic. Tracking metrics such as on-time delivery, product quality, and price variation creates a reliable performance history.
With this data, the buyer gains the power to propose more strategic agreements and justify decisions with transparency.
5. Use market forecasts to anticipate movements
Price volatility and fluctuations in supply and demand can compromise results. Predictive models, powered by internal and external data, help anticipate variations and plan purchases proactively.
Negotiating before cost spikes is one of the smartest ways to protect your budget and maximize savings.
6. Automate operational steps
Automating tasks such as collecting quotes, analyzing proposals, or sending RFPs frees the buyer from manual and repetitive tasks.
This leaves more time for strategic analysis and decisions that truly generate a financial impact.
7. Measure results and learn from the data
Every negotiation is a source of learning. Record the results obtained, compare them to established goals, and analyze performance indicators.
With this foundation, your team builds a continuous cycle of improvement and increases the maturity of negotiations with each round.
Negotiating based on reliable information is the path to more strategic, efficient, and sustainable procurement.
With integrated digital solutions, buyers transform data into intelligence and achieve consistent, lasting savings.
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