First, the answer to the 11/15 question - Name at least two disadvantages of considering a sole-source or single supplier in your procurement decision making.
Like any other procurement method or contract type, there are advantages and disadvantages. A few of the disadvantages are:
- you might not be able to negotiate the best price (or at least may have to modify how you approach negotiations)
- you need to look more closely at the viability of the company and their competition (what would happen if they went out of business or sold out to a competitor?)
- you may need to develop a "plan B" - just in case the sole source doesn't deliver on time or with expected quality
- you need to be sure the seller is highly qualified for the work
- all of the above mean you have to watch time, cost, and quality more carefully as the project moves ahead
Have any other thoughts on the disadvantages (or perhaps want to suggest some advantages)? Please leave a comment.
Now for today's question:
What are the two major objectives of negotiation?
You might be surprised at one of them! Check back on 12/15 for the answer.
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