When it comes to vendor negotiations, there are many pitfalls that businesses can fall into. Focusing solely on price, thinking only in the short term, creating overly rigid contracts, lacking the data to adequately prepare -- these are all-too-common missteps that can hinder a negotiation from the start. How can businesses avoid these traps? According to Amelia Kittson, president of KIA Supply Corporation, the key is leveraging relationships and data.
Amelia took the stage at Catalyze 2025 to explore the importance of viewing vendors as strategic partners and prioritizing long-term value over short-term wins. This approach requires a shift to what she calls a "vendor relationship mindset," a perspective she says is critical to success in negotiations.
In this blog, we're breaking down the essential insights and key takeaways from Amelia's fascinating session at Catalyze.
Establishing the Vendor Relationship Mindset
Let's start with the basics. What does it mean to have a vendor relationship mindset?
It starts with recognizing that vendors are not merely suppliers of goods and services - they're strategic partners that can help your company achieve its goals. This shift in perspective changes the goal from short-term wins to building long-term sustainable value with strategic partners as you work toward a shared goal of mutual growth.
By taking on this mindset, businesses can win better terms, improve program performance, and build long-lasting loyalty from trading partners. As Amelia explained in her session, "Everything is negotiable in vendor relationships." But negotiations don't occur in a vacuum - businesses need strategy and data insights to fully prepare for a negotiation that drives real value for both parties.
Leverage Data for Clarity and Objectivity
Data plays a key role in planning negotiations. Businesses need all the information they can gather about a vendor's business cycle before they take deals to the table.
This is where data transparency between trading partners can make a real difference. Sharing data between partners can facilitate trust, optimize purchasing, improve rebate structures, and ultimately, better position the company during negotiations. Data transparency equips rebate teams to make clear, objective decisions that drive the outcomes they want to see.
Taking control of your data isn't just about better understanding the past. It gives you the power to more accurately predict the future as well. As Kittson puts it, "The advantage goes to the distributor who knows how to use that data, not just to analyze the past, but to predict the future."
Moving Towards More Collaborative Negotiations
In a major paradigm shift powered by advancements in AI and data analytics, negotiations are evolving to become smarter, more transparent, and more collaborative. Instead of setting terms in stone at the outset of a negotiation, the focus is shifting toward mutual growth and real-time, behavior-based adjustments.
AI, in particular, holds transformative potential to change the negotiation game, allowing businesses to personalize their programs, model outcomes and strategies, access data insights in real time, and so much more. It gives businesses full control of their data, empowering them to make faster, more informed decisions to guide the negotiation process towards success.
Not sure if a vendor's contract terms or pricing structure works for your business? Instead of digging through historical data and conducting a complicated analysis, AI can give you access to the specific insights and data points you need to inform your strategy.
The Advantage of Strategic Partnerships
Negotiations aren't just about getting the best possible terms for your business. They're about working with your trading partners to find mutually beneficial terms that can drive growth on both sides of the equation. This means viewing vendors as strategic partners, not just a line item on a spreadsheet. As Kittson reminds us, "Negotiation isn't just about better pricing. It's really about building these smarter, stronger, and more strategic partnerships."
Businesses who adopt this new approach to negotiation – one that centers on transparency, strategic value, and mutual growth – will find themselves making smarter decisions and forging stronger partnerships that drive their business forward. It's time to take negotiation from a competitive sport to a collaborative art form.
Click here to watch Amelia Kittson’s fascinating full session from Catalyze 2025.