Master internal negotiation, turning your team into a strategic powerhouse
How familiar are you with internal negotiation? If you’re not, you might be missing a critical piece of the puzzle. And if you are, there’s always room to sharpen the approach, especially now.In times of uncertainty, shaped by socio-economic shifts and global challenges, internal negotiation often slips down the list of priorities. Yet, it’s precisely this process that has the power to elevate procurement from an operational task to a true strategic driver.Strong internal negotiation builds alignment, enhances efficiency, and creates the foundation for more sustainable relationships with external suppliers.Among the innovators leading the change is Green Apples®, the elite go-to partner which redefines transformations in the sustainability procurement industry. By providing guidance and support to emerging leaders, Green Apples® empowers organisations to navigate sustainable practices and fosters a sense of responsibility that extends far beyond the boardroom.
Why it can change the game
Procurement value lies not just in securing better deals with suppliers but in fostering strong business partnerships with budget holders and internal stakeholders. "The key to successful procurement is recognising that every negotiation starts internally," asserts Ana-Maria Velica, Managing Director and Founder of Green Apples®, who’s expertise in negotiations spreads over two decades.She emphasises that "Procurement value add is to drive cost optimisation, savings and sustainable relationships with the suppliers. All these can only be achieved through strong business partnering with the budget holder and with the internal stakeholder. A strategic Procurement sits at the table with the Budget holder and the C-Suite to reflect the strategic business priorities in a 2025 Procurement Plan."Difficult economic times require a more innovative and resilient procurement function. As Ana-Maria points out, "World-class procurement involves cross-functional, internal collaboration, sustainable innovation and supplier management that resonate throughout the supply chain. The Category Management done in full collaboration with the internal stakeholders creates business innovation and suppliers’ sustainability."
A real-life story of successful internal negotiation
Let's share an example of a successful internal negotiation that Ana-Maria Venica participated in. It required courage and was controversial at the time.Ana-Maria remembers, "Our company was experiencing a hiring freeze, but the CEO and the Chief Procurement Officer challenged our Procurement department to find innovative ways to cut costs and identify savings. We already had a solid foundation in place, complete with negotiation plans and savings targets established at the start of the year, but we knew we had to dig deeper to achieve additional savings. After conducting market research, our analysis of annual spending revealed a clear opportunity. If we had a dedicated resource focusing on our marketing budget, we could significantly optimise our spending by decoupling services from a single provider to two different ones. However, this approach would require at least six months of thorough market analysis and collaboration with our Marketing team to execute properly. To make the case compelling, we developed a detailed business proposal, highlighting that the ROI from hiring this strategic buyer would save the company approximately 15 times their annual salary. When I presented our business case, both the CEO and the Chief Procurement Officer recognised the potential immediately. They deemed it a “no-brainer” decision, and the green light was given.” concludes Ana-Maria Velica.This internal negotiation exemplified strategic and innovative thinking, but also commitment to driving efficiency and value within the organisation.
When it’s important to negotiate internally
The beginning of the year presents the perfect opportunity to review category management plans and contracts management in close partnership with internal stakeholders. This collaborative approach leads to more informed decision-making and stronger alignment across the organisation.
Organisations must not underestimate the power of internal negotiation. According to Ana-Maria Velica, "Effective procurement is a party of three: procurement, stakeholders and suppliers. Without a strong internal foundation, the whole structure risks collapse."Companies that recognise and invest in this often-overlooked process will find themselves better positioned to tackle the challenges ahead, drive sustainable innovation and emerge stronger in a volatile market.In the end, strategic and sustainable procurement must begin within.
This article was first published in Green Apples Tips Newsletter, in February 2025.
Discover more about the remarkable journey of the Founder and Director, Ana-Maria Velica, by watching the episode "Why Mentorship Matters" on the HEART2CORE podcast where she offered wisdom and inspiration for professionals at every stage of their career. https://www.youtube.com/watch?v=d84hZ6_O50Q
