I hope that you have enjoyed the article, \u201cHow To Negotiate When \u2018Time Is Money\u2019.\u201d<\/p>\n
Don\u2019t miss updates on Procurement & Supply Chain, Subscribe here!<\/p>\n
The article gave an example of how you can negotiate in order to give your supplier the incentive to deliver on time. Of course, on-time delivery is not the only aspect of good supplier performance, so I\u2019ll use this post to provide a couple more examples\u2026<\/p>\n
\u201cWhat you\u2019ve proposed is what we consider a premium price. We usually push for rock bottom prices. However, we\u2019d be willing to pay a premium price for premium performance. Here\u2019s what we propose: you reduce your price by 10%; however, if your deliveries conform to the 4 parts-per-million defect rate that you promised, we\u2019ll pay the price in your proposal.\u201d<\/p>\n
\u201cWhat you\u2019ve proposed is what we consider a premium price. We usually push for rock bottom prices. However, we\u2019d be willing to pay a premium price for premium performance. Here\u2019s what we propose: you reduce your price by 10%; however, if you respond to all service calls within 10 minutes as you promised, we\u2019ll pay the price in your proposal.\u201d<\/p>\n
The point I\u2019m trying to make with the above-linked article and this post is that you should never approach a negotiation without considering the criticality of supplier performance and how you might be able to negotiate creatively to assure \u2013 and not decrease the percentage chance of \u2013 satisfactory performance.<\/p>\n","protected":false},"excerpt":{"rendered":"
I hope that you have enjoyed the article, \u201cHow To […]<\/p>\n","protected":false},"author":12,"featured_media":4075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n