How Analytics & Data can Impact Vendor Negotiations?
The key to financial success is to maximize revenue and minimize spending for any business. One best way to accomplish this is to negotiate discounts with vendors. Major airlines such as American and Delta Airlines offer huge discounts, benefits, and services to businesses. You can negotiate good deals by giving them business.
However, we have seen a significant shift from in-person to remote work due to this pandemic. Working from home has become the new norm. However, industry experts predict that business travel will be at pre-COVID levels, so it is crucial to negotiate discounts with travel partners. Negotiating rates and payment terms with your travel partners is always better. Ensure you track spending so you don’t miss out on any discounts. You have to track spend data to make the most of vendor negotiations.
To maximize savings on business expenditures, you need to have visibility into spend data and have actionable insights to build stronger relationships.
Ensure correct and unified data
More and more organizations are adopting expense solutions than ever before. However, most employees manage expenses manually. You must ensure to have good data to negotiate with vendors.
Manual expense management creates problems and can leave you in bad shape when negotiating deals. Cloud-based expense management solution can improve the way you manage spending as a whole. Analyzing the data to get actionable insights can lead to better decision-making. More importantly, without data understanding, you cannot negotiate the best deals with suppliers, vendors, and other parties.
Cloud-based expense solution ensures that you always comply with the budget, as automated workflows prevent out-of-policy spending and ensure spending is tracked in real-time. With an automated expense solution, you can get clear insights into data to better communicate with vendors regarding price negotiations.
While most organizations review supplier payments, vendor terms are also significant. Once you have correct and unified data, you must transform it into actionable insights. You can highlight spending patterns and deliver a wide array of insights which includes:
- Non-complaint and fraudulent transactions
- Frequently used hotels, airlines, and car rentals
- Overpaid expenses and expenses that go over budget
These insights can help build a more robust strategy for proper negotiations increasing discounts. You will be fully prepared to negotiate discounts on hotels, flights, car rentals, and more. If your employees buy office supplies on eCommerce websites, it is better to negotiate directly with suppliers. These negotiations work as you have clear visibility into accurate and up-to-date data.
Maintain transparency with expense management policies
Leveraging data for negotiation involves organizing and extracting meaningful insights. When leveraging data for price negotiations, you should know how well you manage employee spending. Vendors won’t give you good discounts if they don’t know your travel and expense spending patterns.
The best way is to maintain data transparency; automated solutions feature data capabilities that offer unmatched visibility for vendors. Maintain transparency with vendors discuss spend management policies and processes to ensure accuracy. Empowered with data capabilities, SutiExpense builds more trust in vendors and will be more likely to agree to discounts. You don’t have to worry about data inaccuracies, fraud, and non-compliance.
Data transparency can help build trust with vendors and enable full control of travel and expense policies, pushing them towards offering the best deals.