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
Section
Chapter 14, Problem 1DQ
Textbook Problem

Where do you believe buyers spend most of their time in negotiations: on the upfront clauses or on the attached schedules?

Expert Solution
Summary Introduction

To explain: The area buyers spend most of the time in a negotiation.

Contract management:

It is the management of contract creation, analysis and execution to maximize the operational and financial performance while reducing the risks involved. In order for contract management to be successful, both parties involved in the contract must be flexible towards changing circumstances.

Explanation of Solution

Negotiation is a strategic conversation where each party involved try to make the other accept their viewpoint. A successful negotiation finally ends in a solution accepted by all the parties. In a negotiation process, a buyer spends most of the time in the important specifics surrounding the contract and not on the attached schedules.

The ultimate aim of negotiation of the buyer is to get a product at the most reasonable price. Companies want negotiations to be flexible and agile. Normally buyers send mixed messages with information on standardization, strategy, goal, partnership and so on.

Hence, buyers spend most of the time on the upfront causes rather than the attached schedules.

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