What would be an appropriate response from the procurement manager?

A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation.

What would be an appropriate response from the procurement manager?
A . Accept the offer as this would be an ideal opportunity to see what the supplier can offer and will provide the supplier with familiarity while negotiating
B . Accept the offer as this would save time; a supplier visit and negotiation could be done at the same time
C . Decline the offer as it would take too much time to go and visit the supplier
D . Decline the offer as negotiating while on a site visit will provide the supplier with an unfair advantage, as they will be in a familiar environment

View Answer

Answer: D

Explanation:

Negotiating at the supplier’s site can give the supplier a psychological advantage due to their familiarity with the setting. To ensure a neutral and balanced negotiation environment, it’s preferable to conduct negotiations in a neutral location or through structured channels, as recommended in CIPS’s guidance on negotiation settings.