Your SME insider for supply chain, negotiations, and procurement

📌Agenda

Breaking Insight – Why negotiation pressure can turn into your advantage, and how to use it effectively.
Negotiation Power Move – Practical strategies to excel in high-stakes deals without losing control.
Case Study – How a German MDAX company overcame supplier disruptions to secure critical deals.
Trend Watch – Latest research on negotiation frameworks that improve decision- making under pressure.
ProcWee™ Takeaways – our step-by-step guide to mastering negotiations when stakes are high.

📖 Mini-Story

In 2023, Krones AG, a German mid-sized manufacturing company listed on the MDAX, faced significant challenges due to material shortages and global supply chain disruptions.

Despite these obstacles, Krones demonstrated remarkable resilience and adaptability. The company increased its revenue by 12.2% year-on-year to €4,720.7 million and improved its EBITDA margin from 8.9% to 9.7%. This success was attributed to the exceptional commitment, creativity, and flexibility of its workforce, who managed to navigate the tight procurement markets effectively.

Krones' proactive approach ensured timely fulfillment of customer orders and strengthened the company's supply chain resilience (Krones AG, 2023).

🎧📝 Executive Briefing: Your Podcast

Winning Negotiations Under Pressure – Strategies for High-Stakes Deals

Following as text ⬇️

🧠 Breaking Insight

Skill | Tool-Set Prep | Confidence

Mastering negotiations under pressure is about skill, preparation, and mental clarity. Here’s why it matters:​

  • Pressure as a Performance Booster – Well-prepared negotiators can turn pressure into heightened focus and drive. Research shows that companies utilizing structured negotiation frameworks experience a 30% increase in favorable outcomes during high-pressure negotiations. (Gartner, 2024)

  • Cognitive Overload – Poorly structured preparation leads to confusion and ineffective decisions. (Program on Negotiation at Harvard Law School, n.d.)

  • Risk of Suboptimal Agreements – 68% of SMEs settle for unfavorable terms when under pressure due to poor preparation. (McKinsey & Company, 2024)

  • The Real Cost of Inefficiency – Failure to prepare properly can increase procurement costs by up to 15%. (McKinsey & Company, 2024)

When you learn to manage pressure and approach negotiations with clarity, you turn the tables in your favor.

🚀 Negotiation Power Move: Overcoming Fear with Strategy

BATNA | Game Plan | Tools

Implementing clear, actionable strategies under pressure:​

  1. Prepare Alternative Solutions in Advance (Deloitte Insights, 2024)

    • Identify at least three viable alternatives to avoid panic-driven decisions.​

    • Example: An American SME reduced procurement costs by 14% by having pre-negotiated backup suppliers ready.​

  2. Set Clear Priorities and Trade-Offs (Forrester Research, 2024)

    • Decide in advance what elements are non-negotiable and where you can compromise.​

    • Example: A Canadian e-commerce company secured a 10% price reduction by structuring negotiations around its primary objectives.

  3. Use Silence as a Strategic Tool (Program on Negotiation at Harvard Law School, n.d.)

    • Allow moments of silence to create psychological space, leading to more favorable agreements.

🏆 Case Study

Strategy | Confidence | Walk the Plan

Situation:

In 2018, Fuchs Petrolub SE, a mid-sized German company listed on the MDAX and specializing in lubricants, faced significant challenges due to volatile raw material prices and global trade uncertainties. These factors threatened the company's profit margins and supply chain stability.​

Tasks:

  • Secure stable raw material supplies amidst market volatility.​

  • Maintain profitability without compromising product quality.​

Actions:

  • Diversified supplier base to reduce dependency on single sources.​

  • Engaged in strategic negotiations with existing suppliers to establish long-term contracts with favorable terms.​

  • Invested in research and development to identify alternative raw materials.​

Results:

  • Successfully mitigated the impact of raw material price fluctuations.​

  • Maintained a stable profit margin, reporting €2.567 billion in sales revenue for 2018.​

  • Strengthened supplier relationships and enhanced supply chain resilience.

    (Fuchs Petrolub SE, 2018).

What is the primary negotiation challenge most of your employees face?

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📈 Trend Watch

Game Plan | Prep Tools | The Model

Recent research highlights the effectiveness of structured negotiation frameworks under pressure:​

  • Pre-Negotiation Planning – Firms implementing structured frameworks report up to 30% higher success rates in high-pressure negotiations. (Deloitte Insights, 2024)

  • AI-Powered Analysis Tools – New AI-driven tools help SMEs predict negotiation outcomes and optimize strategy. (Gartner, 2024)

  • Collaborative Frameworks – Research shows collaborative negotiation models result in more sustainable agreements under pressure. (Boston Consulting Group, 2016)

Using these tools and frameworks, procurement leaders can navigate challenging negotiations more effectively.

ProcWee™ Takeaways & Action Steps

Develop three alternative negotiation plans before high-stakes discussions. (Deloitte Insights, 2024)

Prioritize negotiation elements and decide where flexibility is possible. (Forrester Research, 2024)

Utilize strategic silence to steer negotiations in your favor. (Program on Negotiation at Harvard Law School, n.d.)

💬 What’s your biggest negotiation risk right now?

  • Join the discussion! Share your insights with industry peers:

  • Drop a comment on my latest LinkedIn post & see what others are saying or text me on X:

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Sources

  1. Krones AG. (2023). Krones Group Annual Report 2023. Retrieved March 25, 2025, from https://www.krones.com/en/company/investor-relations/krones-group-annual-report-2023.php

  2. Gartner. (2024, May 8). Gartner Analysts Explore the Impact of GenAI on Procurement. Retrieved March 26, 2025, from https://www.foodlogistics.com/software-technology/ai-ar/news/22909347/gartner-inc-gartner-analysts-explore-the-impact-of-genai-on-procurement

  3. Program on Negotiation at Harvard Law School. (n.d.). How to Negotiate Under Pressure. Retrieved March 25, 2025, from https://www.pon.harvard.edu/daily/negotiation-skills-daily/how-to-negotiate-under-pressure/

  4. McKinsey & Company. (2024, March 2). The Real Cost of Poor Negotiation Preparation. Retrieved March 25, 2025, from https://www.mckinsey.com/business-functions/operations/our-insights/the-real-cost-of-poor-negotiation-preparation

  5. Deloitte. (2024, September 9). Unlocking the Promise of Cost Optimization. Retrieved March 26, 2025, from https://www2.deloitte.com/us/en/insights/topics/operations/cost-optimization-operations-strategy.html

  6. Forrester Research. (2024). Vendor Management. Retrieved March 26, 2025, from https://www.forrester.com/blogs/category/vendor-management/

  7. Gartner. (2024, May 8). Gartner Analysts Explore the Impact of GenAI on Procurement. Retrieved March 26, 2025, from https://www.foodlogistics.com/software-technology/ai-ar/news/22909347/gartner-inc-gartner-analysts-explore-the-impact-of-genai-on-procurement

  8. Boston Consulting Group. (2016). Four Strategies for Creating and Sustaining Value in Dairy. Retrieved March 26, 2025, from https://www.bcg.com/publications/2016/consumer-products-four-strategies-creating-sustaining-value-dairy

  9. Fuchs Petrolub SE. (2019). Annual Report 2018. Retrieved March 25, 2025, from https://fuchs.azureedge.net/fileadmin/Home/Geschaeftsberichte/2018/Fuchs_Annual_Report_2018.pdf

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