Tolling Arrangements and Cost Effects

Another area to consider in negotiations is tolling arrangements and cost effects on total contract. You need to communicate to all briers that individual prices may vary but overall volume to the preferred supplier is what will really save the compare money. In some cases individual buyers will not be given pricing information. The special pricing obtained from the preferred supplier must not be shopped on the market, especially to non-preferred suppliers. The non-preferred supplier may try to imdercut the preferred supplier. 

I saw a case where a supplier that had been eliminated came back and offered a material at 0.50 per pound less than it was being pitrchased for 

Communicate to all departments the need to work with the preferred snppliers and to develop ways to reduce costs for both companies. 

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