BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681
BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681

Solutions

Chapter 13, Problem 1DQ
Textbook Problem

Why is negotiation such an important part of the purchasing process?

Expert Solution
Summary Introduction

To determine: Why negotiation is important for a purchasing process.

Introduction: Negotiation is the process, or a skill required to build a better relationship. It is important for negotiating service delivery, legal contracts, lease, and sales condition.

Explanation of Solution

As the major goal of the firm is reducing the expenditure however increasing the purchasing power, negotiation is an important part of a purchasing process. In order to get the products at the best price with discounts, the firm must be successful in their negotiation process.

With the help of negotiation in the purchasing process, the firm can be able to reduce the price of the product. In addition to this, during the bulk purchases, discounts could have been gained. The packing charges and the delivery charges can be reduced. Due to these reasons, negotiation is important for the purchasing process.

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