Vendor Negotiation

Goals

• Aim for the best licensing agreement to facilitate a successful implementation.

Focus Areas in Negotiation

• Discussions should center on:
  • The products included in the purchase.
  • The maintenance terms for each product.
• Consider whether professional services for implementation or installation will be included in the agreement or bid separately.
• Address contract life cycle management during negotiations.

Essential Components of Every ERP Contract

• Include the following in the contract:
  • All deliverables and their respective delivery dates.
  • Assurance that the customer has acceptance authority.
  • Identification of individuals on both sides responsible for contract management and those authorized to make changes to the contract.

Role of the Program Manager

• The program manager should appoint a quality manager/contract monitor:
  • This individual will have primary responsibility for ensuring compliance with the terms and conditions of the contract.

Change Management

• Changes to the contract should only be made when necessary due to:
  • Unforeseen circumstances.
  • Mutually beneficial reasons.
  • Unintended mistakes.
• Maintain communication regarding progress to keep all parties informed and engaged.