Supplier negotiation of terms

A supplier can negotiate or dispute the terms that are attached to an event. When terms negotiation is allowed and there are terms on an event, these options apply:

  • On the event response, the supplier can select the option to negotiate the Terms and Conditions for this event.
  • If the buyer adds a manual response for a supplier, they can select "Request to Negotiate Terms."

    When a supplier or buyer selects this option, they can add a comment or create an attachment. These fields are not required.

Setup

The buyer must indicate that terms negotiation is allowed when they create the event. The Allow Terms To Be Negotiated field must be selected on the event. They can also be default values that come from the Sourcing Group or Sourcing Company. You can add text on the Sourcing Group or Sourcing Company. Group and company are displayed on the supplier response page if the supplier requests negotiation. The Negotiation Text field is on the Event Response Text tab.

Negotiate terms during the award process

The Response Analysis form indicates whether an event has at least one supplier request for negotiation of terms. The Negotiate Terms column shows that a request for terms negotiation exists. A yellow Supplier would like to negotiate terms and conditions alert is displayed. A link to comments or attachments that are related to the negotiation is provided, if the text exists.

From the tabs on the Buyer page, select the View link in the Responses column to access Response Analysis.

After the buyer reviews this information, the buyer can contact the supplier and negotiate the terms changes. When all parties are in agreement, the terms will be changed, if necessary. When this process is complete, awarding will take place.

For events and suppliers where terms negotiation has been requested: when awarding the event or event line to the supplier, an additional Terms Have Been Negotiated field is displayed. Select this field when negotiation has concluded. The Terms Have Been Negotiated field does not have to be selected during award creation. If an award is created for a supplier requiring negotiation and the Terms Have Been Negotiated field has not been selected, a warning message is displayed: Supplier Chose To Negotiate Terms; Are You Sure You Want To Award This Supplier?

If the Terms Have Been Negotiated field is selected at event line level, it is automatically selected for all other event lines for that supplier. This is because negotiation is always performed at then event level.

If negotiation is still required on a contract that was created from an event, then the Event Terms Need To Be Negotiated field is selected, and the Event Terms Have Been Negotiated field is cleared. If there are any comments or attachments that are related to the supplier's request to negotiate terms, then a comment is created on the contract. The Event Terms Have Been Negotiated field must be selected before the contract can be activated. This can happen in one of two ways:

  • You can select the check box.
  • If the contract classification requires negotiation, then when the action is taken on the contract that indicates negotiation is complete, the box is selected automatically.