Example of Awarding a Negotiation by Splitting Negotiation Lines

Vision Enterprise has just finished conducting a negotiation on computer supplies it needs to open a new office in Denver. It has received responses from several suppliers.

Some of the suppliers are new but several are incumbent suppliers who have worked with Vision Enterprises for many years. The range of prices offered in the responses varies widely in some cases, and additionally, since the negotiation did not require total unit amount to be offered, several suppliers offered to sell only partial line amounts.

In this scenario, since the offers for the lines have varied so widely, you have decided to award the negotiation to multiple suppliers. To do that, you must award each line individually, and must decide how to award each line among the suppliers who have responded. The table shows the prices offered for an office deck. The negotiation document asked for the supplier to sell 10 desks at $250 each.

Desks

Negotiation Document

Acme Office Supplies

Rocky Mountain Tech Suppliers

Atlantic Tech

Target Price (per unit)

$250

$300

$325

$200

Target Quantity

10

7

8

5

Use the Award by Line option to split this line.

Splitting a Line Among Multiple Suppliers

  1. Access the negotiation.

  2. Close the negotiation.

  3. On the negotiation summary page, select the Award from the Actions menu.

  4. On the Award Negotiation page, select the Lines tab.

  5. Select the line, group, group line, lot, or lot line, and click Award. (Note that group lines cannot be award individually.)

  6. On the Award Line page, the negotiation line targets are shown and all of the responses to that line are displayed horizontally for ease of comparison. When evaluating responses, also note that some responses may have notes or attachments.

  7. When you have made your award decisions, enter the number of awarded units in the Award Quantity for each response. In this example, you would award five units (desks) to Atlantic Tech for $200 each, and the remaining five units to Acme Office Supplies.