8 Tips for Your Procurement Process
The procurement process is dynamic and crucial in projects. It involves several constraints such as scope, time, risk, quality and cost. Regardless of the type of goods that you procure (whether they are materials, products, equipment or services), it’s vital to reduce the total cost to meet the project’s budget or your organization’s price range expectations.
Negotiating the prices does not only depend on the purchaser's soft skills or negotiation techniques; technical skills also have a role in the negotiation process. In this article, I’ll share technical ideas and advice that may lead to cost reductions or price discounts:
1. Understand technical specifications. It is critical to compare the technical specifications, components, characteristics, system interactions, standards followed and quality measurements for the materials, products or services with the project’s specifications, requirements and the client’s acceptance criteria using compliance sheets. Try to identify and consider the features or benefits that are not needed by your client or you, and ask the vendor to eliminate or downgrade them against reducing the total cost.
2. Ensure that your order is not special or customized. Study the vendor’s catalogue to check if your goods match the standard products or services provided by the vendor. Special orders or
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