When drafting a contract, negotiating is crucial. It’s important to keep in mind that the negotiation procedure for commodities is distinct from the one for outsourced functions that have a significant impact on the supply chain.
Negotiation – The process by which a buyer and a supplier agree upon the conditions surrounding the purchase of an item or a service.
Understanding the art of negotiation is essential in procurement. It’s vital to consider factors like negotiation tactics, steps in the negotiation process, and critical questions to ask when determining what aspects to negotiate.
The following table demonstrates various value-added topics that can be discussed during the sourcing process.
