You have been recently appointed as Company Secretary of Project Implementation Company. During the course of its business, the Company has to execute many Contracts. Hence, your Management is keen to devise a best Negot

The steps involved in negotiation of best Commercial and Operational terms with Vendor include: Prepare a Plan: It is always beneficial to prepare a plan before starting the negotiation process. A plan inter alia should include Services or products that can be offered or to be purchases or availed, payment terms, time required for finalization, Cancellation clauses, Penalties including late penalties etc. Finalise the communication system: Frequent communication can be said to be starting point of the trust in negotiations. Every effort should be made to observe and fulfil whatever has been committed. The response is one another important area that can enhance the trust of other party. Timely response is also beneficial. Single point of contact is one other aspect that gives an added advantage. Further, vendors sending personal communication are generally open to negotiations as against Bulk Messages. Offer competitive Prices: Proper research should be done before finalizing the prices of products or services. The prices of similar or competitive products should be studied before offering a price to the customers. Respect the experience of the other Party and help them: Treat the other party as an expert in their area. Try to learn from them. It can prove to be beneficial if you express that you are looking for long associations and you are also interested in the growth of their businesses. Further, it should be demonstrated that how you can help them in growing their businesses. Be open for the competition: You may be sure which vendor you prefer but it is better to obtain the Commercial Contract Management quotes from various vendors also. This activity can keep the prices in control. When you are taking the quotes, try to take the quotations for different quantities for the purpose of evaluation and finalization of quantities to be ordered. So that you will be able to purchase the quantity which is most beneficial to you. Different aspects may be explored: In certain situation, you may find a vendor who is not ready to negotiate the prices of the product or services. It does not mean that there is no scope of negotiation. Other aspects such as Payment terms, Interest, discounts etc. may still be negotiated. Deposits: Vendors are providing their product and services to you in anticipation of the payments within time. However, there may be doubt about the timely payments in their minds. Therefore, deposits can build trust and confidence for you amongst the Vendors. Win-Win solution: While negotiating try to suggest the option which is beneficial for both the parties. Working on a Win-Win situation can make you a preferred party.