Crisis as a Catalyst: How Uncertainty is Driving Procurement Innovation

🎉 New Podcast Alert! | Jam Session

Hosted by Conrad, Natasha, and Zach, Jam Session brings guests from procurement leaders to changemakers to talk candidly about the challenges they face, the strategies they use, and how they turn complexity into opportunity.

In this episode, our hosts are joined by negotiation expert Mark Raffan (Founder of Negotiations Ninja) to explore how procurement leaders can turn today’s global uncertainty—tariffs, economic pressures, and supplier volatility—into a strategic advantage.

🔎 What you’ll see in this episode:

• How procurement teams can thrive amid rising tariffs and trade tension
• Why “win-win” is a flawed negotiation myth—and what to do instead
• The real value of supplier relationships during times of disruption
• Tactical strategies like true-ups, index pricing, and flexible contracts
• How to communicate risk and drive action at the executive level
• Using AI for negotiation prep (and why it’s not a silver bullet)
• What rejection therapy can teach procurement pros about influence and confidence

Watch now or read the transcript below.

Transcript: Proc-N-Roll Jam Session with Mark Raffan | Crisis as a Catalyst: How Uncertainty is Driving Procurement Innovation

Conrad Smith: Welcome to Proc & Roll: Your Guide to Practical Procurement. I’m Conrad Smith, joined by Natasha Gurevich, and Zach from KPMG. Today, we’re excited to welcome Mark Raffan, founder of Negotiation Ninja.

Natasha Gurevich: Mark is a longtime friend and a procurement expert with over 15 years in the field. He’s trained my teams at Salesforce and Nike, and his Negotiation Ninja podcast has over 1 million downloads. Given our recent discussion on tariffs, I knew we had to bring Mark on.

Mark Raffan: Thank you! We’re definitely in a strange and exciting time. Canada, for instance, is dealing with economic stagnation, internal division, and rising tariffs.

Natasha Gurevich: From a business standpoint, what’s your take on the situation?

Mark Raffan: It’s a precarious but defining moment. Companies need to be strategic—not aggressive. Canada should lean into its leverage: rare resources, an educated workforce, global goodwill. Lead with clarity, negotiate in coalitions, and avoid isolation.

Natasha Gurevich: It’s similar to leading a business through transformation. Clarity is essential. If you were advising the PM, what would you say?

Mark Raffan: Don’t confuse power with leverage. Canada can’t out-muscle the U.S., but it can be influential by aligning with allies, maintaining stability, and promoting clarity in its objectives.

Natasha Gurevich: Let’s revisit tariffs. They create massive volatility—but also an opportunity for procurement to step up.

Mark Raffan: Exactly. Tariffs spotlight issues procurement has raised for years: overreliance on suppliers, weak resilience planning. Now, the C-suite is listening. This is a chance for procurement to move from cost-cutter to strategic advisor—if they play it right.

Conrad Smith: What advice would you give procurement professionals looking to rise above the chaos?

Mark Raffan: Think long-term. Don’t just focus on cutting costs—present risk mitigation strategies. Speak the language of the business, not procurement jargon. Highlight the business impact of inaction and show the value of proactive planning.

Natasha Gurevich: Could companies have prepared better for this tariff-heavy environment?

Mark Raffan: Yes and no. The speed and specifics were unpredictable, but warning signs—like protectionist rhetoric—have been around for years. Companies that treated supply chain resilience as strategic, not just a budget line, are faring better.

Natasha Gurevich: So what should they do now?

Mark Raffan: Reframe supplier relationships as partnerships. Collaborate on cost reduction without compromising quality. Map and communicate risk. Use flexible contracts—true-ups, index pricing, shared risk clauses. Build flexibility now, even if it costs more upfront.

Conrad Smith: True-ups are great. Any other tactical suggestions?

Mark Raffan: Yes—longer pricing cycles, reasonable payment terms, and preserving supplier cash flow. Don’t treat suppliers like banks. Index your pricing to market standards with buffers for volatility.

Natasha Gurevich: You emphasize supplier partnerships over domination. Yet you say “win-win” is a myth?

Mark Raffan: Correct. “Win-win” is vague and misleading. I teach goal-based negotiation: focus on what matters to your business. Know what to give up, what to fight for, and ensure the deal makes sense for your goals—not just cost savings.

Conrad Smith: Let’s talk AI. How are you using it?

Mark Raffan: I use it for idea generation, planning, and creating role-play scenarios. But people must think critically. AI is a tool, not a crutch. It helps experienced negotiators, but can mislead the inexperienced.

Natasha Gurevich: Any fun or unique uses?

Mark Raffan: Yes! I use AI for rejection therapy—getting comfortable asking for things and hearing “no.” It’s a great way to build resilience and confidence.

Conrad Smith: That’s amazing. What a creative way to grow negotiation skills.

Natasha Gurevich: Mark, thank you. Your insights on negotiation, leadership, and procurement strategy are always invaluable. We’re lucky to share your voice with our listeners.

Mark Raffan: Thanks for having me. It’s been a pleasure..

This transcript has been edited for clarity while maintaining all substantive content