NEGOTIATING SUCCESSFUL FIXED PRICE PACKAGES
and the milestones that are important to each project .
Set the objectives and deliverables Working more closely with the business takes procurement in the right direction when it comes to setting objectives and deliverables , as this is not something they can do in isolation . Procurement and the business need to work together to establish who is responsible for each of the deliverables and exactly what is being purchased . It may initially be intimidating for procurement professionals to explore new methods of increasing value , instead of simply negotiating lower rates for time and material contracts .
But exploring the use of fixed price contracts can be an excellent way to increase procurement ’ s strategic involvement in the business . Fixed price contracts mean that procurement gains a more in-depth understanding of the business needs , which they can then use to increase value from suppliers .
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