Services
Contract Negotiations
Effective sourcing can only be achieved with a good understanding of Procurement best practices. This requires detailed knowledge of the spend category and the market around us. Procurement function must strive to deliver more value outside of traditional spend categories; this can be done by leaving the cost discussion aside, initially. The need is to focus on strategic ways to achieve optimal sourcing.
Don Vito Corleone in Godfather
“A friend should always underestimate your virtues and an enemy overestimate your faults.”
Contracts define the long-term relationship of parties and are expected to withstand the test of time. A contract with terms overwhelmingly favoring one side will collapse over time and will not be to the benefit of either party. On the other hand, every organisation likes to ensure that it is not taking undue risks and overpaying. So what’s the best outcome? Engaging.
Smart contract negotiations are methodical and backed by data. When it comes to lowering costs, driving business, and developing category management strategies, companies need an effective market research team to navigate the supply chain landscape and present the facts. Costmap has the market intelligence necessary to make smart supply chain negotiations possible.
Balanced Contract
Costmap can assure that contract contains the best terms for you albeit equitable for the other party. Expert negotiators and contract professionals at Costmap are ready to ensure that negotiations realise into an equitable contract for both parties.
Meaningful Planning
If poorly planned and executed, the negotiation of a contract can be a long, tiring and frustrating affair. Over-populated meetings which continue for days with little progress being made on commercial points, over zealous legal advisers who focus on points which have no real impact on the deal fundamentals, costly delays and significant frustration are sadly a common experience.
Contract negotiation
Negotiation of a contract can also expose the organisation to a variety of different types of risks which are all too often overlooked.
Common risks faced by organisations during negotiations include:
- Contract which does not support your business needs and objectives.
- Delays in the timetable which can prove costly.
- Delays in the realization of benefits from the outsourcing.
- Long term damage to the relationship.
Our years of implementing strategic sourcing best practices for top firms, coupled with our contract database and team of market research experts, provides our clients real-time insight into the competition, supply trends, contract terms, price points, and the supplier community. costmap will remove the guess work from your next Procurement investment to help your company remain competitive and negotiate cost savings.
Our Contracting and Negotiation Services include:
- Preparing and conducting negotiations on behalf of its client.
- Choosing the right contract model with risks equitably distributed.
- A thorough review of the proposed contract.
- A review of pricing terms, conditions and service terms.
- A review of the general terms and conditions.