The best way for the supply manager to gain a deeper understanding of the supplier's position is to perform a SWOT analysis. This analysis helps identify the supplier's strengths, weaknesses, opportunities, and threats.
Understanding these factors provides valuable insights into the supplier's business environment, financial risks, and potential areas for collaboration. It allows the supply manager to develop a more informed negotiation strategy that addresses both parties' needs.
References:
* "SWOT Analysis: A Comprehensive Guide" by Lawrence G. Fine.
* ISM guidelines on supplier analysis and evaluation.
* CIPS resources on strategic sourcing and supplier evaluation.