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12 Steps to Contract Negotiations

12 Steps to Contract Negotiations | Supply chain News and trends | Scoop.it

Negotiating contracts is a skill that every organization and business owner will need at one time or another.

Whether it is the decision to outsource a service, or negotiate the price for new office equipment, business leaders will need to fine tune this skill.

The trick is to use a systematic and unbiased approach to contract negotiations.

12 Steps to Contract Negotiations1.  Identify a Need

Whether you are looking for help cleaning your building, repairing an HVAC unit or an IT company to help with some strategic initiatives, you need to understand what your need is before you can look for a vendor to help you.  Take some time to educate yourself and be able to define the problem with a vendor.

2. Identify Team

Identify a team of employees to help identify the need, research and interview the vendor.  This will be your think tank to make sure every aspect of the agreement is thought through.  You only need a few people for this but it is always beneficial to have other eyes and brains on this type of project.

3.  Research Vendors

Once you know what the need is, have your team help research vendors that specialize in the particular area you need help with.  Talk to friends and others in your field for referrals.  The internet is a great resource and many organizations have ratings on their services.  Use these resources and read customer comments.  You can learn a lot from just doing a little research and listening to their customers.

4.  Use BBB as a Resource

Check with the BBB on the vendors you pick and see if they have any prior unresolved customer issues.  This can also be done online and is a great resource not only for finding a good vendor but also if you make Charity Donations.  You want to do this checking before you ask for a proposal so you won’t be wasting your time negotiating a bid only to find out the vendor has unresolved customer issues.

5.  Identify Three Vendors

Identify three vendors that look the best to you.  Think about the big name vendors that do a lot of advertising. You can expect to pay a little more for them so make sure you list at least one vendor that does not have the big name recognition.  Smaller vendors that have not been around as long are hungry and might be able to do a really good job for you at a lower cost.

6.  Request for Proposal

Once you have your three vendors chosen, contact them, describe what your needs are and ask for a formal proposal or otherwise called a request for proposal (RFP). Ask the vendor to include a list of customer references with their proposal.

7.  Vendor Interview

Have the vendor come in and present the proposal to the team.  Allow the team to ask questions and clarify any uncertainties.  This is when you make sure the proposal is written to meet all of your needs.

8.  Review Terms of Agreement

Once you have all three proposals, review each of them side by side to make sure they are comparable.  Call the vendor and get clarification on anything that does not make sense or may need further clarification.  Things to look at are duration of agreement, payment cycle, termination clause, liability for both sides, scope of services, what they will and will not do, etc.  Look at what their approach is to cost control, quality of product or service and their customer service commitments.

9.  Negotiate Differences

Once you have a good understanding of the proposed agreements, go back and negotiate any sticking points that might hold you back.  Everything is negotiable so don’t hesitate to ask if you think it is something important to the agreement.

10.  Check ReferencesOnce you are settled on an agreement, start calling the list of references and ask questions like: How long have you used this vendor?Have there been any issues?If yes, how did the vendor address the issues?How is the customer service of the vendor?How would you rate the vendor employees?If there was anything you could improve with the vendor, what would it be?11.  Second Opinion on Agreement

Once you feel comfortable with an agreement, have another set of eyes look at it to see if there are any outstanding things that may be missing.  This should be another person who is familiar with looking at contracts.

12.  Sign

Ok, now is when you sign the agreement and agree on a start date. Take the agreement and tickle your calendar or the appropriate person’s calendar with anything you may be responsible for in the agreement ie; payment schedule, auditing process, inspections, etc.

Lastly, negotiating is a skill that can be learned.  The trick is to find a good balance for what your needs are and what the vendor can provide.  Remember, vendors are always looking for new business so make sure you give them the opportunity to give you their best offer.  Also, remember that cheaper is not always better so be sure you can evaluate the product/service differences so you don’t mistakenly sacrifice quality for cost.


Via Daniel Watson
Miklos Szilagyi's curator insight, March 5, 2013 2:56 AM

Contracting 101...

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Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades – Parte IV

Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades – Parte IV | Supply chain News and trends | Scoop.it
Aviso navegantes esta entrada donde vamos a intentar seguir hablando sobre la “Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades”, es una entrada larga, compuesta de 4 partes, que hemos estado descubriendo a lo largo de los meses, de momento el mes pasado descubrimos la primera parte, la segunda parte,…
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La desaladora que menos electricidad consume del mundo es portátil, modular y está instalada en las Islas Canarias

La desaladora que menos electricidad consume del mundo es portátil, modular y está instalada en las Islas Canarias | Supply chain News and trends | Scoop.it
La falta de lluvias está castigando a las Islas Canarias con una de las mayores sequías que se recuerdan. En una carrera a contrarreloj por recuperar la...

Via Santiago Sanz Lastra
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May 20, 11:56 PM
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Study reveals consumers value animal welfare more than environmental sustainability when buying meat and dairy products

Study reveals consumers value animal welfare more than environmental sustainability when buying meat and dairy products | Supply chain News and trends | Scoop.it
The treatment of animals rates higher than green issues when consumers choose meat and dairy products.

That's according to a new study, which suggests that while consumers consider sustainability important, other factors such as taste, quality, and animal welfare take precedence in their purchasing decisions.

Via EcoVadis
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Great Leaders Are Thoughtful and Deliberate, Not Impulsive and Reactive

Great Leaders Are Thoughtful and Deliberate, Not Impulsive and Reactive | Supply chain News and trends | Scoop.it
All leaders have two selves. There’s the self we prefer to present to the world – the one that is run by our pre-frontal cortex and is measured, rational, and capable of making deliberate choices. And then there’s the self, run by the amygdala, that is reactive and impulsive and often causes us to fail to meet our commitments or overreact in frustration. The antidote to reacting from the second self is to develop the capacity to observe your two selves in real time. You can start by noticing and labeling your negative emotions such as impatience, frustration, and anger – to get distance from them. Also, watch out for times when you feel you’re digging in your heels. The absolute conviction that you’re right and the compulsion to take action are both strong indicators that you‘re operating from that second self. Finally, it’s important to ask yourself two key questions in challenging moments: “What else could be true here?” and “What is my responsibility in this?” Questioning your conclusions offsets confirmation bias and looking for your responsibility helps you focus on what you can change – your behavior.
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Este es el cargador único que será obligatorio en 2025 y que valdrá para móviles y ordenadores

Este es el cargador único que será obligatorio en 2025 y que valdrá para móviles y ordenadores | Supply chain News and trends | Scoop.it
En la última comparecencia del ministro José Luis Escrivá lo dejó claro: a partir de 2025 todos los dispositivos electrónicos deberán usar el estándar tipo C...

Via Santiago Sanz Lastra
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May 4, 4:54 AM
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ESG funds declining due to regulation and performance

ESG funds declining due to regulation and performance | Supply chain News and trends | Scoop.it
Various environmental, social and governance (ESG)-related funds from Abrdn, Morgan Stanley and UBS have recently been renamed to omit sustainability-related phrases.

In addition, according to data from Morningstar Direct cited by the FT, launches of environmental, social and governance (ESG)-related funds have been steadily declining, with only six launched in the second half of 2023 compared to an average of nearly 100 a year between 2020 and 2022.

The trend follows a ruling from the SEC in September 2023 that 80% of assets in funds must be related to the name.

Via EcoVadis
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April 28, 4:30 AM
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Primero lo hizo India, ahora Estados Unidos está cubriendo sus canales de riego con millones de paneles solares

Primero lo hizo India, ahora Estados Unidos está cubriendo sus canales de riego con millones de paneles solares | Supply chain News and trends | Scoop.it
Se pueden matar dos pájaros de un tiro cubriendo con paneles solares los canales de riego de zonas afectadas por las sequías. Ya lo demostró la India y ahora...

Via Santiago Sanz Lastra
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April 22, 11:55 PM
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Navigating environmental regulations for cosmetics

Navigating environmental regulations for cosmetics | Supply chain News and trends | Scoop.it
As increasingly tighter rules aim to address environmental concerns, businesses face mounting pressures to meet these new sustainability targets.

This year’s InCosmetics Global trade show housed a dedicated Sustainability Zone to help beauty and personal care companies navigate the ever-changing rules, as they continue their journey to become more sustainable throughout their supply chains.

According to Dr Barbara Olioso from The Green Chemist Consultancy – who was moderating and overseeing the Sustainability Zone – it’s a challenging topic for businesses and more collaboration could very be helpful.

Via EcoVadis
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April 22, 11:55 PM
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Aquatech collaboration aims for salmon farming circular economy

Aquatech collaboration aims for salmon farming circular economy | Supply chain News and trends | Scoop.it
A collaboration between aquaculture technology specialists Ace Aquatec and start-up Tiny Fish aims to advance the Scottish salmon industry’s circular economy by helping the sector gain access to new premium food markets for its smallest fish.

Scottish salmon farms have an approximate monthly survival rate of 97 to 99 percent throughout their lifecycle, with the fish lost each month commonly being composted. However, through their new collaboration, Ace Aquatec and Tiny Fish hope to alter this fate, culling smaller fish and marketing them as a premium food product.

Via EcoVadis
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April 21, 4:34 AM
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España tiene un plan para lograr la independencia energética: el corredor H2Med de hidrógeno verde

España tiene un plan para lograr la independencia energética: el corredor H2Med de hidrógeno verde | Supply chain News and trends | Scoop.it
Mucho ha llovido desde el acuerdo en diciembre de 2022 que ponía en marcha el proyecto H2med. Los despachos no han estado de brazos cruzados y, tras la...

Via Santiago Sanz Lastra
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April 18, 11:55 PM
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Top 10: Automotive Sustainability Strategies

Top 10: Automotive Sustainability Strategies | Supply chain News and trends | Scoop.it
Sustainability Magazine recognises the top organisations in the automotive industry and their strategies for ESG and reducing climate change contribution
While seemingly a thankless task to rank companies based on their sustainability credentials, we endeavour to recognise the great achievements of the major industries and their strategies towards carbon neutrality.

With that said, the automotive sector is one where strategy is key at the moment and here are 10 organisations in the auto industry with big plans to change the way we drive. 

Via EcoVadis
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El hidrógeno sólido puede almacenar 20 veces más energía que las baterías de litio

El hidrógeno sólido puede almacenar 20 veces más energía que las baterías de litio | Supply chain News and trends | Scoop.it
Photoncycle es una solución de almacenamiento a base de hidrógeno sólido que ofrece una altísima densidad energética, permitiendo almacenar la energía durante tiempo de forma segura y eficiente.

Via Santiago Sanz Lastra
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Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades – Parte II |

Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades – Parte II | | Supply chain News and trends | Scoop.it
Aviso navegantes esta entrada donde vamos a intentar hablar sobre la “Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades”, es una entrada larga, compuesta de 4 partes, que iremos descubriendo a lo largo de los próximos meses, de momento el mes pasado descubrimos la primera parte, pero vamos a ver…
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Con 2 trucos de ingeniería, Toyota desarrolla un motor alternativo que convierte sus híbridos en cero emisiones

Con 2 trucos de ingeniería, Toyota desarrolla un motor alternativo que convierte sus híbridos en cero emisiones | Supply chain News and trends | Scoop.it
El fabricante japonés se desmarca de la tendencia de su competencia modificando el desarrollo de un motor clave, que supone una opción paralela a los motores eléctricos que estará presente en sus coches de calle.

Via Santiago Sanz Lastra
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May 20, 11:56 PM
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CSDDD: EU's due diligence law vote should drive supply chain sustainability efforts

CSDDD: EU's due diligence law vote should drive supply chain sustainability efforts | Supply chain News and trends | Scoop.it

The European Parliament has voted to adopt the Corporate Sustainability Due Diligence Directive (CSDDD), following months of negotiations between the European Union (EU) institutions and member states.

“Ensuring that corporations take responsibility for preventing and managing the environmental, labour, and human rights impacts of their supply chains is key to global sustainable development efforts. The adoption of the CSDDD is a step in the right direction”, Suzy H. Nikièma, Director of Investment at the International Institute for Sustainable Development (IISD) said.


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Only 16% of Indian Organisations Prioritised Sustainability Goals

Only 16% of Indian Organisations Prioritised Sustainability Goals | Supply chain News and trends | Scoop.it

At a time when climate related risks are posing a challenge to businesses, 86 per cent of organisations in India recognise the significance of sustainability in shaping business strategies, but only 16 per cent have prioritised sustainability goals and built them on real facts and data, IT infrastructure services provider Kyndryl and Microsoft stated in a joint study.


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Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades – Parte III

Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades – Parte III | Supply chain News and trends | Scoop.it
Aviso navegantes esta entrada donde vamos a intentar seguir hablando sobre la “Inteligencia Artificial y el Futuro del Trabajo en las Organizaciones: Desafíos y Oportunidades”, es una entrada larga, compuesta de 4 partes, que iremos descubriendo a lo largo de los próximos mes, de momento el mes pasado descubrimos la segunda parte, y el mes…

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Greenhushing impacting private markets' ESG activity

Greenhushing impacting private markets' ESG activity | Supply chain News and trends | Scoop.it
Some asset managers are retreating from their public ESG commitments due to so-called ‘greenhushing’ suggests a report into ESG investing in private markets.

The report, ‘The State of Private Market ESG and Impact Investing in 2024’, was published by PitchBook, a market data provider for the private equity and venture capital markets.

It found that firms are no longer prioritising some of their ESG and impact investing programs for fear of a backlash from opponents of green and sustainable investment strategies or for fear of reputational damage amid claims of greenwashing.

Via EcoVadis
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ESG disclosure working its way into private markets

ESG disclosure working its way into private markets | Supply chain News and trends | Scoop.it
Private market funds may soon need to open their books to scrutiny regarding their ESG performance, and many industry players are welcoming the change.

“I’m looking forward to seeing more disclosure and transparency in the private markets,” said Bonnie Foley-Wong, Canada sustainable investment leader with Mercer (Canada) Ltd. in Toronto. “Investors are asking for that and it will certainly help in terms of whole-portfolio management.”

Via EcoVadis
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¿Se puede construir un edificio con una impresora 3D? Descubre Phoenix, el brazo robótico gigante que puede lograrlo

¿Se puede construir un edificio con una impresora 3D? Descubre Phoenix, el brazo robótico gigante que puede lograrlo | Supply chain News and trends | Scoop.it
La visión de la compañía creadora del brazo robótico gigante es luchar contra la crisis inmobiliaria en la que se encuentra inmersa Estados Unidos y el resto del mundo.

Via Alvaro Díaz A.
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April 22, 11:55 PM
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Nestlé Purina joins the Global Sustainable Seafood Initiative

Nestlé Purina joins the Global Sustainable Seafood Initiative | Supply chain News and trends | Scoop.it
Nestlé Purina utilises a variety of fish and seafood items, sourced from around the world and is the first GSSI partner from the petfood industry to join the global partnership network.

A high proportion of the seafood ingredients in Purina’s products are seafood sidestreams - those parts of the fish remaining after fillet removal. Despite this, the company believes that it can further expand its use of responsibly managed and sourced seafood and has set a goal for the ingredients in its products to be 100 percent responsibly sourced by 2030.

Via EcoVadis
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April 22, 11:50 PM
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Esta investigación española descubre como producir hidrógeno verde a partir de algas y bacterias

Esta investigación española descubre como producir hidrógeno verde a partir de algas y bacterias | Supply chain News and trends | Scoop.it
En el estudio, los investigadores de la Universidad de Córdoba han observado que la colaboración entre microalgas y bacterias incrementa la producción de hidrógeno, llegando a generar hasta un 60% más de este gas.

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April 18, 11:55 PM
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Tata Motors: A journey towards sustainable transportation

Tata Motors: A journey towards sustainable transportation | Supply chain News and trends | Scoop.it
Tata Motors, a leader in automotive innovation, recently presented its futuristic solutions for mobility at EXCON 2023, emphasising the need for sustainable commercial vehicles. With a focus on green technologies, Tata Motors has greatly boosted its investments in electric and hybrid vehicles.

Via EcoVadis
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April 18, 11:55 PM
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The first non-polluting combustion engine: 440 HP of power and only emits water vapor 

The first non-polluting combustion engine: 440 HP of power and only emits water vapor  | Supply chain News and trends | Scoop.it
The automotive sector finds itself amidst a notable transformation driven by technological advancements prioritizing environmental sustainability and energy efficiency. This evolution is reflected in a growing trend towards alternatives seeking to replace the internal combustion engine, known for its high pollutant emissions and contribution to climate change.

Via EcoVadis
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Mega KPIs Bundle

Mega KPIs Bundle | Supply chain News and trends | Scoop.it
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