A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation.
What would be an appropriate response from the procurement manager?
- Accept the offer as this would be an ideal opportunity to see what the supplier can offer and will provide the supplier with familiarity while negotiating
- Accept the offer as this would save time; a supplier visit and negotiation could be done at the same time
- Decline the offer as it would take too much time to go and visit the supplier
- Decline the offer as negotiating while on a site visit will provide the supplier with an unfair advantage, as they will be in a familiar environment
Answer(s): D
Explanation:
Negotiating at the supplier's site can give the supplier a psychological advantage due to their familiarity with the setting. To ensure a neutral and balanced negotiation environment, it's preferable to conduct negotiations in a neutral location or through structured channels, as recommended in CIPS's guidance on negotiation settings.