Categories
Management

Vendor Management

Abstract

Vendor management is the process of managing the relationship between suppliers of a good or service to fulfill a mutually beneficial existence.  The better the relationship is managed the more opportunity there is for successful interactions between the supplier of the good or service and the recipient.  There are multiple scenarios where a relationship can influence the decision making process.  The relationship that is built between the vendor and the customer could provide greater insight into the ability to meet the customer’s expectations and requirements for a particular project or need.  Vendor selection and negotiations are complicated processes and there are tools and techniques that are utilized to simplify the processes.  Negotiation skills are necessary to develop business opportunities and these skills can be honed over time through training and usage.  The improvement of these skills and the appropriate vendor selection for key projects of the organization can lead to multiple opportunities for the organization to grow and become prosperous in the future.

Categories
Management

Incentives and Contracts

  1. Discuss risk factors in contract pricing, including the effects of bad decisions on the project being managed.

There are risks involved any business decision made. Contract risks are very important to consider when creating a contract for a project. Each project varies and risk assessment should be managed effectively in order to maintain profits.

Categories
Management

Pricing arrangements

Pricing is one of the most important elements in a procurement contract. The price of the contract determines the actual value of things purchased in the procurement contract. Different purchases attract different costs depending on the nature of the items or the services involved. Different items have different pricing approaches, for instance a service may be priced according to its quality which depends on the skills and qualifications of the person providing the service.  This paper looks at contract pricing for an initiative to pursue three procurement contracts that entail the following; purchasing a new building to host the company’s offices, purchasing a new company car and developing new software.