1. Buyer/Supplier Relations and Negotiations
Rick K Wakida, CTE, CCTE, GLP
GBTA Upstate New York Chapter
Education Day 2016
May 17, 2016
© 2015 GBTA Upstate New York Chapter. All rights reserved.

2. Agenda Business Travel versus Leisure Travel Relationship Definition
Buyer/Supplier Relations
Identifying Potential Buyers/Suppliers
Managing Relationships with Buyers/Suppliers
Monitoring Results
Cultivating Relationships with Buyers/Suppliers
Sourcing Process
Negotiations
© 2015 GBTA Upstate New York Chapter. All rights reserved.

3. Business Travel versus Leisure Travel
Leisure Considerations
Lowest costs
Flexibility (dates, times, airports, los)
Business Considerations
Application of travel policy
Travel Profiles
Negotiated supplier agreements
Company FOPs
Duty of Care QC
Expense reporting tool
Management reporting
© 2015 GBTA Upstate New York Chapter. All rights reserved.

4. Relationship Definition
6/13/2018
Relationship Definition
What is a relationship?
The way in which two or more people or things are connected
Does the relationship serve the interests of both parties?
Inception
Natural versus developed
© 2015 GBTA Upstate New York Chapter. All rights reserved.

5. Buyer/Supplier Relations
Identify, cultivate, and manage relationships with current and potential buyers and/or suppliers that support the travel program’s goals and objectives
Identify potential buyers/suppliers
Cultivate current and potential buyers/suppliers
Manage current buyers/suppliers
© 2015 GBTA Upstate New York Chapter. All rights reserved.

6. Identifying Potential Buyers/Suppliers
6/13/2018
Identifying Potential Buyers/Suppliers
Conduct due diligence with respect to potential buyer/supplier
Establish and prioritize mutually beneficial strategic travel program goals
Monopoly mkt; low rated biz; overlapping pattern; bad credit; bad driving record
Shift mkt share; high rated biz; complimentary pattern
© 2015 GBTA Upstate New York Chapter. All rights reserved.

7. Managing Buyer/Supplier Relationships
Monitor and ensure compliance
Identify and execute process improvements
Conduct or participate in account reviews
Conduct internal contract audits
© 2015 GBTA Upstate New York Chapter. All rights reserved.

8. Monitoring Results Schedule account reviews
Occasionally schedule formal audits/process improvement exercises
Treat as a continuous cycle
© 2015 GBTA Upstate New York Chapter. All rights reserved.

9. Cultivating Buyer/Supplier Relationships
6/13/2018
Cultivating Buyer/Supplier Relationships
Prepare and issue/respond to RFxs
Evaluate and select suppliers/customers based on RFx responses
Mutually develop SLAs and KPIs
Identify and agree on technology platforms used to support contract goals
Negotiate contract terms and conditions
Develop and implement communication plans
Communicate contract details to appropriate parties
Gather data > narrow choices > prepare and send RFP > evaluate and negotiate proposals
© 2015 GBTA Upstate New York Chapter. All rights reserved.

10. Sourcing Process Market Characteristics Bid Preparation RFx Content
6/13/2018
Sourcing Process
Market Characteristics
Bid Preparation
RFx Content
Analyze RFx submissions
© 2015 GBTA Upstate New York Chapter. All rights reserved.

11. Negotiations Negotiation Terms Define Negotiation Ranges
6/13/2018
Negotiations
Negotiation Terms
Most Desired Outcome (MDO)
Least Acceptable Agreement (LAA)
Best Alternative to a Negotiated Agreement (BATNA)
Zone of Possible Agreement (ZOPA)
Define Negotiation Ranges
Success is possible if LAAs overlap (ZOPA)
Failure is likely if LAAs do not overlap (BATNA)
© 2015 GBTA Upstate New York Chapter. All rights reserved.

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