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November 14, 2022

Discuss the mechanisms of creating and establishing formal relationships with vendors

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Instructions

A successful negotiation is a complicated process, which requires research about the other side, preparation on how key elements that may be negotiated rank in significance for the company and what sorts of risks exist. In this assignment, you will analyze these elements.

Items negotiated in a sourcing negotiation are not limited to just price. Describe three non-price issues that may be negotiated. Explain how each may impact the discussion on price and how each may impact the buyer and the seller.

What are some key pieces of information that a buyer should gather about a potential supplier before entering negotiations? List at least three, including where this information may be found.

Describe the risks to suppliers associated with each of the different types of contracts (fixed- price, incentive, and cost-based contracts)?

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