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How can you negotiate to get lower price after issuing purchase order?

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Question added by Sami Al Areqi , Supply & Equipment Engineer (Act. Deputy Procurement Manager) , FAST Consortium LLC
Date Posted: 2014/09/21
Ravshanbek Abdullaev
by Ravshanbek Abdullaev , Accountant , Fajr Al Mustaqbal General Trading LLC

Once purchase order is issued, it is a kind of difficulty to again negotiate the prices, however if you get some kind of information from other competitors about lower prices, then you could ask for some kind of discount such as asking for bonus quantities etc.

Muhammad Shoaibullah Khan - CSCP, CSCM
by Muhammad Shoaibullah Khan - CSCP, CSCM , Head of Supply Chain , Bays International (pvt) Ltd

Ethically and professionally once purchase order is issued, price negotiations should not be done. Unless , post issuance negotiation is mentioned in the terms of po. . However, price can be 're negotiated by by presenting a counter offer with lower prices from another supplier Or increase in qty of material.

Muhammad  Sultan
by Muhammad Sultan , construction foreman , Alwasead Alaqarya

There are many way to negotiate after ordering but it's depend on your negotiation reason like that1=Change of Fashion

2=Change of Style

3=Change of Weather

4=Change of Quantity

etc

Joselito Santillan
by Joselito Santillan , Senior Planning Engineer , Azmeel Contracting Company

It is common protocol that once PO has been issued, no negotiation for discount will be entertained, unless both parties shall gain for the negotiated discount.

Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

In general, price should not be negotiated unless there are solid and cogent reason to take such an action. Such reasons may include drastic decrease in prices of raw material, significant changes in tax structure applicable on raw material and/or finished product, etc.

 

Ahmad Abdulhadi
by Ahmad Abdulhadi , Supply Chain Manager , Al Amin Medical Instruments Co. Ltd., AMICO

If you are able to increase the quantities, you can negotiate the prices.

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