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basketball_jones wrote:
SNIP Once again, I CAN'T get that price until I am ready to sign and I can't be ready to sign until I get that price. K. Isn't that the definition of Catch-22?? Seriously, you need a sit down negotiation session with your potential suppliers, AND HAVE YOUR PURCHASING AGENT/LAWYER PRESENT. Part of your strategy is to let your potential suppliers know right up front that it is a competitive procurement based on either lowest price or best value [whatever your criteria may be][The stated criteria is common to and binding on all potential suppliers [you can't change the rules without inviting a rebid from all suppliers]]. In my experience, once we moved from the technical issues I yielded all related business risk issues to the Purchasing Agent or Lawyers. Engineering should NEVER sign a purchasing contract. The US DOD and my company used legal professionals to definitize the purchasing agreements/contracts. Review your potential supplier's quality programs, manufacturing capacity, inventory levels, their supplier vulnerabilities, [you don't want your long term sales jeopardized by a sub-supplier's strike etc.,], cash flow requirements [do you make a partial payment up front or is it post delivery billing], backlog [you don't want your schedules held hostage by a supplier's backlog issues]; these are business issues that exceed 'lowest price' criteria. Negotiation is more a part of business than creative design. In many MBA programs there are courses in negotiation. Remember, your supplier NEEDs business; and, wants to MAXIMIZE their profit also. Deacon Dave, W1MCE |
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