The TIME Factor in Procurement and Logistics Negotiations

Kraljic Model
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Gonza Paul
Student (University)

The TIME Factor in Procurement and Logistics Negotiations

In what ways may TIME affect one's negotiation position with regard to price, quality, negotiation style and future relationship with the supplier?

Manager, Germany

Being Early to Market

Based on my experience, if a product is early to market this can bring much more profit to the supplier. Because in that case the purchaser is easily subject to internal pressure, which may worsen his negotiation position.

  Koen Vandermarliere
Business Consultant, Belgium

The Influence of Time on Procurement and Logistics Negotiations

Two further examples where time can work in your advantage or disadvantage:
1. You need a product to keep your production running. Or you need to get an agreement before your buffer stocks are used or your plant shuts down. Your negotiation position will be poor.
2. You are interested to purchase some product and it's near the end of a quarter or a fiscal year closing and your order could make the difference if you decide before the closing. Most companies will propose an "incentive" if you order before the closing.


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