VALUE PRECEDES PRICE
Price is an important element in any procurement negotiation. We believe, however, that value is far more important than price. The value of a product is both a quantitative and non-quantitative measure of all transactions between a supplier and us. Price alone will rarely be the decisive element in a negotiation.
The elements that collectively determine a product's or service's value include:
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On-time delivery.
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Quality: Our definition of quality incorporates conformance to specifications, fitness for use and consistency in process.
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Professionalism while performing services or conducting business.
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Schedule, capacity, flexibility and availability.
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Participation in innovative programs to reduce overall cost of ownership. These can include JIT, stores, lead time reduction, credit card purchases, electronic replenishment, etc.
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Continuous improvement programs.
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Technology.
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Familiarity and conformance to the industry requirements and standards.
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New, innovative thinking.
