Yesterday, we posted a blog about the first two tips in working with Sourcing Managers.  Today, we'll cover tips three and four.


Tip #3: Do know why the sourcing manager is holding the bidding event. Sourcing managers bid out business for a variety of reasons, such as:

  • Their current seller’s contract is expiring
  • They want to leverage high levels of spend in a specific area to generate savings
  • They’re not happy with their current seller’s performance or want value they’re not getting
  • They need additional sources of supply

By doing some research, you can respond in a way that best meets their needs.


Tip #4: Don’t agree up front to terms that later have to be parsed by your legal department. “Sometimes larger suppliers will agree during the event to the terms we specify, and then later announce they have to send the contract back to their legal for review,” Sherrill says. “That’s a turnoff, since I ask specific questions about the terms for a reason, and they didn’t mention the need for legal approval because they were afraid it would count against them or cause them to be eliminated.” Though such strategies may help you win the initial bid, they tend to backfire eventually. “It’s better to just ask, ‘If I say no, will I be disqualified?’ than to say yes and then take exception to terms later during the contract negotiation process.”


In the Next Blog We'll Cover Tips #5 and #6

If you don't want to wait until tomorrow to learn more, then go to the Supply Lines group to read the full article.


This post is part of the current issue of Ariba Supply Lines. Ariba Supply Lines is a quarterly newsletter that provides valuable tips, best practices, and the latest thinking to take your online business relationships with your buying customers to the next level.

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