1. Using Procurement
  2. Default Internal Cost Factors in Negotiations

Default Internal Cost Factors in Negotiations

Supplier may be qualified for the business but may still have some hidden costs or operational drawbacks.

These operational drawbacks may be deficiencies such as past performance issues, logistics cost due to supplier location, additional project management needs, and so on, which can be quantified and added to the supplier's responses as internal costs.

You as a category manager can provide a default set of these internal cost factors for negotiation lots and lines either in the negotiation template or directly in the negotiation. When default internal cost factors are set, any new lines added to the negotiation online, using lines import spreadsheet, or REST API will be automatically applied with these internal cost factors.

To set and apply internal cost factors as line defaults:

  1. In the Sourcing work area, create a new negotiation template based on seeded style for example, Standard Negotiation.

  2. In Lines, click Manage Default Line Details.

  3. In the Manage Default Line Details page, click the plus icon to add the internal cost factors and click Add from List to add the internal cost factors from a list.

  4. Create a negotiation based on the negotiation style and template.

  5. If you want to add or update more internal cost factors as default, click Manage Default line details and add the internal cost factors.

  6. Publish the negotiation.

Here are things you have to consider when you apply cost factors as line defaults.

  • If negotiation style doesn't have internal cost factors enabled for line price but has default line attributes enabled, The Manage Default Line Attributes button is displayed.

  • When you create a new negotiation line of line type Fixed Price Services, the default internal cost factors of pricing basis Per Unit aren't added to the new line.

  • When you create an amendment, save a negotiation as a template, duplicate a negotiation, or create a new negotiation round, inactive default internal cost factors aren't copied to the new document, but existing lines are copied without dropping inactive internal cost factors or their values.