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Internal Negotiations in Procurement

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  Image Credit: Freepik Procurement and negotiations are closely linked and negotiating in contracts is one of the best practices accepted in the profession. While recruiting for Procurement, the negotiation skills are highly valued and sought after. When we talk of negotiations in procurement, the first thing that comes to our mind is the negotiation between a buyer and a seller. However, there is another negotiation which is equally important and which may be carried out more often than the negotiation with the seller. It is the internal negotiation, which lays the foundation for the next steps in procurement. Because the internal negotiations are carried out as a matter of routine and in a much flexible and informal format, they are often done not as consciously as the external negotiations, nevertheless, they can equally impact the price, quality and terms of the contract as much as the external negotiation. Only when the importance of internal negotiations is recognised, Procu...
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Before procuring, ask - do we really need it?

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  Image Credit: Freepik - pressfoto At some point in personal or professional life most of us have come across instances of procuring things only to realise later that they are really not needed or they do not improve the current situation in any significant way. It’s a clear case of a bad procurement decision, not the procurement process. In personal life, this may be the result of impulsive or compulsive buying disorder. At times, rational procurement can become a myth in some of the organisations too, especially where there are inadequate financial and administrative controls on capital procurement and procurement of non-standard materials and services.  According to a 2022 article on the World Bank blogs site , “Governments today spend an estimated $13 trillion each year on public contracts for goods, services and public works. As much as a quarter of that is wasted in inefficient or shortsighted procurement practices. Halting the waste could free up at least $1 trillion a...
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