What can be a consequence of poor negotiation in procurement?

In the context of procurement, poor negotiation can lead to higher costs and unfavorable terms. This consequence arises because ineffective negotiation may result in agreements that do not leverage the buyer's position, leading to less favorable pricing or terms that do not align with the buyer’s requirements or budget constraints. Without strong negotiation skills, procurement professionals can end up agreeing to terms that impose excessive costs or do not provide adequate value, negatively impacting the organization’s profitability and operational efficiency.

Conversely, the other options suggest outcomes that are not typically associated with poor negotiation skills. Increased supplier loyalty and improved supplier relations usually stem from effective communication and negotiation strategies that build trust and foster long-term partnerships. Similarly, streamlined procurement processes are a result of well-planned and efficiently executed negotiation strategies that clarify expectations and enhance collaboration, which is unlikely to be the case when negotiations are poorly managed.