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Negotiations

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Once you've received, refined, and analyzed the initial proposals, you will move into the Negotiation phase of Strategic Sourcing. At this stage, you will develop target price points for the products or services you buy, identify preferred suppliers (incumbents or alternates), and request that suppliers meet the established targets in order to win your business. Chapter 6 provides strategies for identifying price targets and leveraging multiple bidders against one another.

As discussed in Chapter 6, organizations should not view Negotiations as separate from the rest of the Strategic Sourcing process. Even thinking of it as a distinct “phase” can be misleading. Some form of negotiations should be taking place with the supplier community throughout the Strategic Sourcing process.

Managing Indirect Spend

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