Implementing a World Class Purchasing Organization

Negotiating an agreement with a vendor can be a long drawn out affair with neither party happy with the outcome. Having a poor relationship with your vendor at the start of the contract is not the way in which world class purchasing organizations operate. Vendors are an important part of your supply chain. The materials they provide are required on specific dates so that your order is shipped to the customer on the date promised. Making your vendor a partner rather than just another vendor will help ensure that your orders are correct and on time. Negotiations with your vendors should focus on the benefits of being a vendor; showing them that if you are successful, they will be successful. Negotiations that focus on penalty clauses and fines for poor quality and missed delivery dates will leave the vendor less than willing to accomodate your requirements.