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Sometimes in the Procurement field we are faced with a decision between2 preferred suppliers/contractors. Supplier A offers a competitive rate with THEIR standard payment terms. Supplier B offers a higher rate (as their final offer) but with YOUR ideal payment terms.
To my fellow practitioners, how do you go about this issue?
The first part, we shall consider the delivery requirement of the item and the cost impact of the delivery to the overall cost.
Secondly to analysis the cost impact and price delta.
Thanks for invitation. If you have idle money and no feasible short term opportunity for investment, please select the lowest rate.
If you have the opportunity to invest cash for short term, then weigh the option and select the one which d offers the lowest cost considering investment opportunity and profit thereof
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