Negotiation or RFQ Non-government purchasing departments continue to offer a range of pre-qualified vendors a request for quotation (RFQ) for items or services that it wishes to purchase. The competitive bid process can produce a range of bids and conditions that the purchasing department will evaluate and then award the business. This may or may not involve some form of negotiation. Most negotiated business will involve items or services that are not necessarily definable by an RFQ. The purchasing department and the vendor will negotiate more than a price. The negotiation will usually cover what is to be manufactured or what is the extent of the service to be provided, the warranty, the transportation services, technical assistance, packaging alternative, payment plans, etc. Purchasing items or services of significant cost will require extended negotiations to arrive at a final contract. Purchasing professionals are required to participate in these types of negotiation to ensure their companies obtain the best price with the most favorable terms, and staff may need to be trained in negotiation methods as it becomes more commonplace in a difficult economic climate. More at bit.ly/18UbxH2
Posted on: Fri, 21 Jun 2013 08:30:00 +0000
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