THE BUSINESS REVIEW FOR PROCUREMENT LEADERS
Like partnering, "win-win" is a term that is now so overused that it is in danger of becoming meaningless, argues Professor Cox. More fundamentally, the notion that buyers and suppliers can both achieve their ideal outcomes simultaneously is simply not feasible, because commercial exchange is by its very nature contested.
While it is normal for buyers to believe that both parties need to benefit from a long- term collaborative relationship, the important point is just how much each receives from it. Full win-win is, in fact, only one of nine theoretical outcomes, ranging from lose-lose, through to win-lose and win-partial win in favour of either side.
Using four case studies - covering telecommunications and IT, professional design services, capacitor supply and drilling rig sourcing - the author seeks to show how these different outcomes can be played out in practice. The bottom line is that uncritical and unthinking acceptance of the "win-win" concept by buyers is likely to result in suppliers taking advantage of their naivety.
Five steps are suggested that buyers should consider when entering long-term relationships to ensure that they avoid ending up on the losing side.
