Procurement Analytics is the process of collecting data, applying analytical techniques : To get actionable insights. Support decision making Improve S2P operations Demand forecasting is important for procurement. Methods of demand forecasting: Traditional statistical methods ML techniques Demand sensing The foundation for intelligent planning ,budgeting is Accurate Forecasting Having accurate data- based forecasts help at the initial negotiation stage A recent study by Barclaycard Payments showed that 78% of senior procurement decision managers emphasize the importance of data in supplier negotiations Knowledge and confidence are needed for effective negotiations Implement data aggregation, price forecasting techniques

You need to tie them into clearly defined and measurable interim milestones ideally with financial incentives/penalties. A successful partnership relies on collaboration and joint share of ownership. If it’s unrealistic then get them to agree to something more realistic. That may alter the business case but then maybe that the right answer

If the vendor is large and established: ask for customer references and case studies If the vendor is an early stage startup: start small with a POC (proof of concept) - with clearly defined milestones and a little relaxed timelines. Make sure you trust the team. Have an exit option within 6 months. In both cases, if you are not able to trust the vendor, even after giving them a small trial, walk away. Unless it's a new area like AI, you can always find alternatives to most vendors.

A fair assessment of the vendor's capabilities, market standing, and past work can help address concerns about unrealistic promises. Establishing a well-defined SOW with guardrails, contingency plans, and escalation SLAs further mitigates risks and ambiguity.

Unrealistic vendor promises can derail progress if not managed effectively. Start by assessing the feasibility of their claims and whether they are ambitious or truly unattainable. Open transparent communication to understand their delivery plan and identify gaps. Set clear boundaries by defining acceptable terms and outlining consequences for non-fulfillment.

Here's a concise and creative approach, Stay Cool: Appreciate their enthusiasm. Get Specific: Ask for detailed plans. Show the Facts: Use data to explain why their promises might be off. Offer Solutions: Suggest realistic alternatives. Set Checkpoints: Break the project into milestones. Document It: Keep a record of all agreements. Stay Connected: Maintain open communication. By blending professionalism with clear communication, you can turn unrealistic promises into achievable goals! How does that sound?

When you look for a service, naturally the provider would want to hook you up to their service. One of the ways to do that is to hype you, oversell and overpromise. It is not professional, but it happens. Should you face it, just play along and see where it goes, there's always a chance they might surprise you positively. But always ask the other party to back up their words with proof (this is applicable not only for vendor management) - this will enable you later to keep them accountable and penalize them. Such proof can be in the form of contract agreements, transparent visualization of their commitments and work in progress (Gantt charts, roadmaps, work-in-progress boards), RAID log, regular status meetings, formal email communication.

First, it’s important to communicate the potential consequences of unrealistic promises to the vendor. By having an open and transparent conversation, we can understand their perspective while clearly outlining our expectations. From there, we should collaborate to identify realistic commitments that work for both parties, ensuring alignment and setting achievable goals moving forward.

"To ensure mutual accountability and realistic outcomes, we will implement well-defined Incentive and Penalty Clauses in the agreement. Incentives: Exceeding agreed performance targets will be rewarded with additional incentives, promoting excellence and timely execution. Penalties: Non-compliance with agreed deliverables or timelines will result in penalties, reinforcing shared responsibility for success. This balanced approach fosters fairness, motivates exceptional performance, and minimizes delays or shortfalls.

Unrealistic promises from a vendor can often lead to trouble if not addressed early. I approach such situations with curiosity instead of confrontation—probing them on how they plan to deliver. Asking probing questions about how they plan to deliver on their promises, often reveals gaps in their claims. I then shift the discussion to realistic, measurable milestones that align with business goals. Drawing on benchmarks and my experience, I validate their commitments and even involve third-party audits if needed. It’s also a test of their integrity—how they respond to challenges speaks volumes. This ensures that partnerships are built on trust and deliver real value, not false expectations.