0 Replies Latest reply on Jan 5, 2011 8:15 AM by Dustin Neild

    Negotiating payment terms in an auction after price has settled.

    Dustin Neild Expert

      Leadership has asked me to develop a creative way to negotiate payment terms after the pricing in an auction (with Sourcing Pro) has been settled.  We typically hold RFPs before any auction, and every RFP states the minimum payment terms required, yet we ask suppliers to indicate if they are willing to offer extended terms beyond those.  We often carry that question forward into the auction but bidders rarely change their initial (RFP) response.

       

      So the idea here is to run the auction on price/total cost, but then AFTER the price (at standard terms)  has settled, be able to re-open the payment terms questions (almost like line items that occur in succession) - basically saying: pricing has settled (at net x), but will you hold that same price at net y? The Net z, etc.

       

      Is anyone else doing something similar?  Do you know of a creative way to accomplish this?  I am contemplating building a custom definition of item or lot at the template level so that the question is treated as a lot/item.  But then the competitive term cannot be price, and we have the problem of sorting out ranks and ties,etc.

       

      I'm interested in hearing anything you are doing re: payment terms as well as any creative solutions you can think of.

       

      Thanks in advance,

       

      Dustin Neild

      Covidien