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Vendor Discussions, Essay Example

Pages: 1

Words: 289

Essay

For the buyer’s side, it is important that the organization employs good selection techniques that would enable a proper selection of suitable suppliers. The process should be coupled with good negation skills that ensure suitable grounds for doing business is established between the two parties proper negotiation ensures that neither the buyer nor the supplier is left worse off than the other. As much either of parties may be interested at achieving their own interests, it is important the ethics which guide the relations between the buyer and the supplier be adhered, for instance in the negotiation process one of the parties may use other means to induce the other. A case example is most suppliers bribe buyers to accept deals which they do not prefer and therefore end up buying defective items for the organization.

The other element that is important is the issue of pricing, the buyer is often driven to purchase at lower prices and therefore use the element of pricing in determining the direction of the contract. The seller on the other hand is driven to the urge to sell at higher prices to obtain higher profits. This conflict tends to disregard the element of fair dealing between the two parties, it is therefore important the two parties be guided by standard prices in the market rather than individual prices that may affect the life of the contract.

The issue of selecting suppliers on the buyers side, they are guided by elements of quality and neglecting other issues such as experience of the supplier in the given field. Price and quality are issues that pertain to convenience, however for long term supply contracts benefits it is important experience of the vendor should be taken into consideration.

 

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