Supplier Negotiation and Evaluation
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Can you help with these questions.
1. Can you identify where a supplier may stealthily insert profit in a cost item.
2. How would yu use a credit or price analaysis as well as total cost ownership in the evaluating of this supplier's proposal or bid.
3. How would you effect a win win negotiation with a potential long term suppliers for a specific product or service.
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Solution Summary
Evaluation of suppliers is discussed step-by-step in this solution. The response also has the sources used.
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Step 1
I can identify where a supplier may stealthily insert profit in a cost item. I am familiar with the cost items the suppliers use and I can identify if any item has been inflated. In addition, I can use market information, price enquiries, and requests for quotation to verify each cost item submitted by a supplier. Information obtained can be used by me to pinpoint exactly where the supplier may be inserting profit in a cost item. Also, increases in cost items from time period to time period can help me spot insertions of profit in cost items.
Step 2
I can use credit or price analysis ...
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