SPIS Toolbox - Contract Supplier

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9. Contract Supplier

In a final step, the best system provider needs to be selected based on cost-quality considerations. In a meeting of the producer, the agricultural service provider and the shortlisted candidates, the following topics should be addressed:

• detailed presentation of offer and the SPIS experience by provider;
• explanation of design procedure and tools to be used (e.g. computer-based sizing);
• product quality and safety certificates;
• warranty, after-sale services and spare part supply (e.g. maintenance contracts);
• final negotiation on price, if required;
• implementation schedule;
• contract details and payment conditions.

The contract should only be concluded once all open questions have been clarified.

In the negotiations with the supplier it is important to:

• define your goals;
• identify negotiation areas;
• look for win-win situations;
• make realistic proposals;
• clear up misunderstandings;
• make a final summary.

Outcome/Product

• Ultimate quality provider with the best cost-quality ratio;
• Supply contract, including after- sale services.

Data Requirements

• Technical and financial quotations / offers;
• Shortlisted candidates;
• Structured comparison of qualified bids;
• Clarification of open questions during negotiation.

People/Stakeholders

• Producers;
• Agricultural service providers;
• Suppliers / system integrators.

Important Issues

• Quotations / offers often deviate from technical specifications;
• Significant differences exist between bidders in terms of services and warranty.
• Implementation scheduling needs to be firm and agreed upon.
• Negotiate with the supplier.

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