Contract negotiations are one-way and mis-orientation can be detrimental to all parties involved. During negotiations, a supplier will always insist on the maximum they believe they can achieve. It`s up to you, as a procurement professional, to fight back with something you think is more reasonable. This may mean that they give up part of the discount in exchange for a reduction in the quantity obligation. The key here is to see what works best for your organization. Pressure on volume commitments can be particularly punishable for existing customers. Imagine, for example, an organization that buys $1.5 million from industrial suppliers from a supplier, which represents 90 percent of its total spending in this category. They are contacted by the supplier and are asked to enter into a contractual agreement with an additional annual obligation of expenses. These obligations are usually defined in contracts in the form of a letter of agreement (LOU) or another form of sales contract. Strong relationships with suppliers are important; It`s better to maintain a long-term supplier relationship than to create something for short-term savings that is unstable and harmful after just one year.
This amendment No. 1 to qualcomm Atheros Technology Ltd. The Volume Sales Agreement (the “Amendment”) is entered into on June 17, 2014 (Effective Date) by and between Qualcomm Atheros Technology Ltd. (formerly Atheros Technology Ltd., “QATL”) with the principal address at Belvedere Building, 69 Pitts Bay Road, Ground Floor, Pembroke, HM 08, Bermuda. and Aruba Networks, Inc., (“Buyer”) with primary address at 1344 Crossman Ave., Sunnyvale, CA 94089. *Selected products and services must be treated exceptionally and may not be available under standard conditions. .