Question

In: Operations Management

List three non-price issues that a buyer and seller can reach agreement on and explain why...

  1. List three non-price issues that a buyer and seller can reach agreement on and explain why each issue might be important to the buyer and/or the seller.

(purchasing and supply chain management course)

Solutions

Expert Solution

Below are the three non price issues which seller and buyer can have agreement on along with their importance:

1. Quality of goods: This is the most important issue for the buyer since quality of goods impacts the sales and goods and further impacts the profitability of buyer. Hence quality of goods must be good in order to have long term association between seller and buyer.

2. Timely availability of goods: It is another very important parameter since availability of goods when required or at a short notice builds trust factor between seller and buyer and drives further relationship. Also it helps in replenishment of goods at a faster rate as well.

3. Inadequate communication: Inadequate communication between seller and buyer results in losses to both the parties and affects trust as well. Hence proper communication is extremely important to ensure smooth operation.


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