Article
Successful negotiation elevates procurement
Far from a lost art, negotiation is a core competency
Successful negotiation increases the role and value of the procurement department in an organization. In a new position paper, NIGP: The Institute for Public Procurement contends that the procurement official should be the entity’s lead negotiator and is in the best position to achieve the overall objective of the negotiation. Keeping a record of savings achieved through negotiation is a notable measure of procurement success. It also provides evidence of the role negotiation plays in...
An effective way to ensure
An effective way to ensure outcomes that are mutually beneficial to both public bodies and contractors is to do business with contractors that have already have established programs in a field. For instance, a company has already been vetted if they have either a GSA contract in the federal sphere or a state contract and are recommended by their current clients. This can be especially beneficial for public bodies that are seeking to quickly cut costs in a particular area or do not previously have an agreement with a contractor in place, as the contract is already proven as a win-win proposition for the current clients. Equipment Maintenance Management Programs are well-suited for this type of procurement,. They are an often overlooked area where costs can be cut and are benefitted by scale. Public bodies can obtain a better value by procuring through an existing contract as the field of equipment maintenance benefits from scale, allowing certain contractors to offer greater savings to clients while still maintaining an effective business model.