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.