What A/Z Looks For When Selecting A Supplier
Products or services that we buy should meet the specifications that we request and the selected supplier agrees to provide by acceptance of our order. We want to be sure the selected supplier has the technical capabilities and equipment needed to fill our requirements successfully.
Our selected suppliers should make deliveries on the schedule they agree to. All salespeople are expected to have the authority to negotiate a firm agreement. If a salesperson has limited authority to make an agreement or is unsure of his or her authority to do so, the buyer should be told before accepting any purchase order or contract. All accepted purchase orders and contracts are considered firm agreements.
All prices, therefore, are also considered firm and not subject to negotiation after a purchase order is submitted unless the agreement includes a clause permitting price changes for changes in cost. Even when escalation is permitted by the agreement a request to increase prices should be submitted for approval by the appropriate authorized buyer and should be accompanied by supporting documentation.