Negotiating contracts with suppliers play a huge part in the supply chain process. An optimal outcome is creating a respectful and positive interaction that will be a win-win situation for both parties. A successful negotiation can contribute to business success when an agreement is reached. During the process of contract negotiation, clauses have to be favorable for both suppliers and buyers.
A contract negotiation does not necessarily have to be getting the possible cheapest price, it can also be negotiated in terms of delivery, production time, quality, services, etc. Each procurement contract carries different types of contractual clauses but there are some major clauses that worth looking into which will be further discussed in this article.