Am I missing something here?
Genuine question for the procurement people on here.
I’m working on a software renewal and from the start the recommendation has always been to renew with the current supplier. That hasn’t changed and everyone involved knows that’s the direction we’re taking.
As part of the commercial review, I decided to do a light touch market benchmark. Not because I’m looking to replace the supplier, but because I wanted to validate value for money and strengthen our negotiating position before signing anything.
A couple of suppliers came back asking for some high level information so they could put together indicative pricing. That’s when some stakeholders started asking why I was engaging other suppliers, even though I’d already explained this wasn’t a replacement exercise.
Am I wrong for thinking this is just part of good procurement???!?!
If I’m expected to challenge pricing and negotiate the best commercial outcome, surely understanding what the market looks like is part of that. It doesn’t mean we’re changing suppliers, it just means we’re doing our due diligence before renewing.
Curious how everyone else approaches renewals. Do you benchmark the market even when you already know you’re staying with the incumbent, or do you just negotiate with the existing supplier?