Contract management ranges from inception to completion when goods or services are delivered and accepted. The complexity of a contract has several considerations including what is purchased, the duration of the purchase agreement, and the countries involved. Contract Management and Negotiations will focus primarily on business transactions in the supply chain. Supply chain procurement activities range from one-time purchases of commodity type items (such as MRO or spot buys) to capital equipment that can take a year or more to negotiate with companies from different industries. Considering supply chain activities, we will focus primarily on purchases of raw materials used in a production environment.
Negotiations is part of the contract management process. For example, purchasing a house will probably require extensive negotiations as compared to purchasing a package of pencils. In the complex supply chain, negotiation might start with price but other value-add considerations such as payment terms and delivery schedule are included. In regard to supply chain related negotiations, we will first focus on what to negotiate and, second, the process of negotiation.Review the critical questions and learning objectives.
Critical Questions
• What are the three phases of contract management?• What are the five steps of the negotiation process?• How would you define negotiation?• What are three critical questions to be considered during all steps in the negotiation?
Learning Objectives
Upon completion, participants will be able to:
• List the three phases of contract management.• Compare where CISG vs UCC is considered.• Distinguish contract deployment to compliance management.• Define negotiations as provided in the APICS Dictionary.• Name the five steps in the negotiation process.• List the three critical questions to be considered during all steps in the negotiation process.
TermsUse the Flashcards and Games to review the terms.