Negotiating supplier contracts

Supplier contract negotiation involves discussing factors such as price, delivery times, payment terms or the quality of the goods. You may need to vary your approach for different negotiations. Factors to consider include who your supplier is, what alternatives you have and whether you want to do business with a particular supplier again.

Both sides should conclude a negotiation feeling comfortable and happy with the agreement. Negotiations can be unsuccessful if either side feels forced into a corner.

This guide explains how to prepare for contract negotiations and set negotiation objectives. It describes some common contract negotiation strategies and tells you how to carry out supplier due diligence checks.

Finally, it explains how to negotiate a supplier price and agree supplier contract terms.