Case study

Strengthening supplier negotiation on a strategic category

Prices renegotiated and a continuous negotiation practice installed
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Context and objectives

A major retail chain specialising in home improvement, the company entrusts its category managers with both range building and the supplier relationship. Negotiation, however, is becoming a continuous exercise, and the buying teams are reaching the limits of their capacity.

The procurement leadership wants to test a new model: mandating an external expert on high-stakes negotiations, starting with a targeted product family, to inform its thinking on the function's target organisation.

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Assignment

An interim manager, a highly experienced head of procurement, works for 9 months part time, around two days a week in a hybrid format. He identifies the priority scopes with the teams, prepares each negotiation (cost structures, currencies, freight, supplier profitability, quantified mandates), leads the meetings in tandem with the category managers and then autonomously on the pricing side, and verifies that the conditions obtained are actually applied, with regular reporting to procurement leadership.

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Results

  • High-stakes negotiations seen through and revised conditions loaded into the retailer's systems
  • Preparation method handed over to the category managers: cost analysis, mandate framing, meeting technique
  • A structured debrief feeding the decision on the future organisation of the procurement function

Company profile

Retail
+500 salariés
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