Brothers in Arms

Sector: Telecoms, Media & Technology

A new perspective on services procurement that benefits both service providers and buyers

A new perspective on services procurement that benefits both service providers and buyers

Traditionally, buyers and service providers have tended to put too much emphasis on price. Service providers go for maximum margin while buyers try to minimise cost. The result is an impasse that undermines the chance of building enduring and mutually beneficial supply-purchasing relationships.

Providers of goods and services have to tread a fine line between selling their wares too cheaply and pricing themselves out of a relationship. Buyers of goods and services risk either becoming too dependent on a particular supplier or running short of what they need. This is particularly true if procurement terms haven’t been reviewed for a long time.

The world moves on, and expectations do, too. Recognising and tackling risks head-on during contract negotiations is therefore essential. To help companies on either side of the equation steer clear from taking an overly narrow approach, we present a simple framework that service providers and buyers alike can use to make them brothers in arms — rather than uncomfortable bedfellows.

Brothers in arms
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