Negotiating/Purchasing

Course Overview

Negotiating goes well beyond price. Organizations negotiating solely on price will find they end up paying in other areas or will only establish short-term business relationships. Organizations and suppliers negotiating for value put both of their respective entities in a favorable position. There are so many terms to be negotiated, it’s best for an organization to prioritize what conditions hold the most value. This preparation allows for giving and taking in the negotiation process. For example, a supplier may push for minimum order quantities from a customer. Minimum order quantities may be an easy concession for a large organization with ample space but for a small business, this could be unacceptable. In this case, the small business could pay a higher price for a smaller quantity.

Learning Objectives

• Recognize what is negotiated between organizations and suppliers
• Understand how negotiation between purchasing and suppliers occurs
• See why negotiating and purchasing for value is more important than price.

*This course references US legislation and statistics.